Marvel Gold has resolved to spin out its advanced Chilalo Graphite Project into a wholly-owned subsidiary named Evolution Energy Minerals.
Evolution intends to undertake an initial public offering (IPO) and seek a listing on the Australian Securities Exchange (ASX).
Managing Director, Phil Hoskins, comments:
“There is no doubting the quality of the fully permitted and construction-ready Chilalo Graphite Project. Since the re-brand to Marvel and the focus on our Mali gold projects, there has been no value attributed to Chilalo despite Chilalo’s peer comparisons trading at many multiples of Marvel’s entire market capitalisation.
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“The IPO of Evolution is the opportunity for Marvel to remove the historical debt encumbrance and unlock Chilalo’s value potential.
“Evolution has attracted three directors with significant graphite development, construction and marketing expertise, and will be well placed to add value for its shareholders through Chilalo’s development.
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“Completion of the Proposed Transaction will allow Marvel to focus on its exciting Mali gold exploration. In the nine months since acquisition, we have increased Tabakorole’s resource by 54%, increased the grade of the resource by 20%, de-risked the metallurgy and grown the landholding by 300%. Resource expansion drilling is continuing as Tabakorole continues to emerge as a significant west African gold deposit.”