Marvel Discovery Corp. (TSXV: MARV | GR: O4T | OTCQB: MARVF); and Falcon Gold Corp. together hold 1,185 totaling 29,525ha located along the Baie Verte Brompton Line (BVBL) in central Newfoundland. An agreement was made to option their interests in the property to Carmanah Minerals Corp., previously announced on 8 July 2023.
Carmanah recently announced the acquisition of the Hare Hill Pluton rare earth project covering 162 claims totaling 4,050ha in western Newfoundland. The property is directly contiguous to the recent “Bottom Brook Acquisition” by York Harbour Metals Inc.
The transaction is considered a non-arm’s length transaction because of the companies having directors and officers in common and is subject to TSXV approval. As per TSXV Policy, an NI 43-101 resource report and site visit has been completed pending final approval.
This transaction is beneficial for Marvel/Falcon. Having a large equity stake in Carmanah positions both companies favorably as exploration at the BVBL moves forward. Meanwhile, the option agreement enables Carmanah to develop a significant land position in the camp next to York Harbour’s Bottom Brook Property.
The Hare Hill granitic system is prospective for rare-earth mineralization, as recently reported by York Harbour Metals, whose grab rock samples returned total rare earth oxide grades (TREO) between 3.45% and 21.63% TREO. Previously, Kirrin Resources Inc. reported drilling results that included 4.47% TREO over 5.64m core lengths and 1.16% TREO over 15.3m core lengths on the Bottom Brook project in February 2011.
Carmanah will make cash payments totaling C$155,000 over a four-year period and issue 5M common shares, and 5M share purchase warrants exercisable at 10 cents per share for a period of three years from the date of issue. The distribution will be a 60/40 split in favor of Marvel, with 3M shares and C$93,000 issued to Marvel, and 2M shares and C$62,000 issued to Falcon.
For further information, please visit: www.marveldiscovery.ca
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