Marvel Discovery Corp. (TSXV: MARV) and Falcon Gold Corp. (TSXV: FG) jointly hold 35,050ha located along the Baie Verte Brompton Line (BVBL) in Central Newfoundland. The two companies have agreed to option their interests in the property to Carmanah Minerals Corp. (CNSX: CARM).
Carmanah recently announced the acquisition of the Hare Hill Pluton Rare Earth Project covering 4,050ha in Western Newfoundland. The property is directly contiguous to the recent Bottom Brook Acquisition by York Harbour Metals Inc. announced 21 December 2022.
“We are very pleased to have been able to work an option deal with Carmanah Minerals, Carmanah presents a great opportunity for all companies while allowing us to share in the success of potentially a new district scale discovery,” CEO Karim Rayani commented.
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 (TREO) grades between 3.45% and 21.63%.
“Marvel currently has approximately 90,000ha of prospective ground – tied to major structures in Gander, Hope Brook, and the Victoria Lake Area. We look forward to new developments coming out of the BVBL, as the area is quickly becoming known for its rare earth potential,” Rayani added.
Carmanah will make cash payments totaling C$155,000 over a four year period, issue 5M shares, and 5M share purchase warrants exercisable at 10 cents per share for a period of three years from the date of issue.
The deal leans in a 60/40 split in favor of Marvel with 3M shares issued and C$93,000 and Falcon receiving 2M shares and C$62,000. Marvel and Falcon’s properties will be subject to a 2.5% NSR (Net Smelter Royalty) Carmanah can purchase 1% for C$1M cash payment.
The transaction is considered a non-arm’s length as a result of the companies having directors and officers in common and is subject to TSXV approval.
For further information, please visit: www.falcongold.ca
