Marvel Discovery Corp. (MARV.V), a Canadian-based junior explorer, recently announced the closure of the first tranche of its non-brokered private placement on November 28, 2023. This milestone follows the company’s announcement on November 17, 2023, and marks a significant financial boost with the raising of $650,000 in gross proceeds.
The company issued 12,000,000 flow-through units (FT Units) and 1,250,000 non-flow-through units (NFT Units). FT Units, priced at $0.05 each, included one flow-through share and a half share purchase warrant, while NFT Units, valued at $0.04 each, comprised a non-flow-through share and a full share purchase warrant. The warrants from both units allow for further share purchases at predetermined prices within specific periods.
Proceeds from the FT Units sale are designated for exploration and development of Marvel’s projects in Quebec, whereas funds from the NFT Units will support general working capital, with a clear directive against using these funds for payments to non-arm’s length parties or investor relations activities.
Marvel Discovery also agreed to pay finder’s fees totaling $45,500 in cash and 927,500 broker warrants to an arm’s length party. These warrants are exercisable into common shares at a set price for two years from the closing date. The final acceptance of this tranche is pending approval from the TSX Venture Exchange.
In 2023, Marvel Discovery faced market challenges, with its year-to-date value declining by 50%, leading to a diminished market cap of $4.99 million. However, the company’s share price rose 12.5% over the last five days to $0.045 CAD per share. This market performance contrasts with Marvel’s active exploration pursuits, including the acquisition of the Costigan Lake Uranium Property and the expansion of land holdings at the KLR-Walker Uranium Project.
Moreover, assay results from their exploration program at the Kraken project in Southern Newfoundland, conducted in partnership with Falcon Gold, revealed multiple anomalies, including gold-silver-copper-lead-arsenic and various critical and rare earth elements. These findings, deemed significant by CEO Karim Rayani, suggest a strong potential for further discoveries.
