ASX-listed Marvel Gold is giving consideration to the best pathway to maximise value for Marvel shareholders, including a possible demerger and IPO of its 100%-owned Chilalo graphite project in Tanzania.
Read more: Marvel Gold extends landholding in Mali
The company has received numerous investor enquiries about Chilalo and any transaction on the project would likely reward existing shareholders with priority shareholdings and preferential rights to participate in capital raised.
The graphite market outlook is very strong with elevctric vehicles forecast to drive +700% growth in natural graphite demand by 2021 according to Roskill. Graphite demand for ex-China graphite supply has increased since the onset of the COVID-19 pandemic and a strick focus on ethically sourced supply chains. This a compelling opportunity for projects with product quality such as Chilalo.
“Chilalo is the forgotten sleeper within Marvel’s asset portfolio,” says Marvel Gold MD Phil Hoskins.
“Since repositioning the company in March 2020, our focus has quite rightly been on advancing our exciting gold projects in Mali, where the Tabakorole project has grown to a near 1 Moz resource with resource expansion drill results expected imminently. Notwithstanding that focus, Chilalo remains a quality asset and Marvel Gold has continued to entertain interest from strategic investors, industry partners and project financiers.”
Hoskins adds that investor enquiry has recently intensified and that the company is proactively assessing transaction options for Chilalo that optimise value to Marvel shareholders.
The company said that it intends to fianlise the preferred path as soon as possible.