While the main asset stability of Marvel & CloseCurlyQuote; develops, the fallout is inevitable. Scarlett Johansson embarks on her own Black Widow movie. Everyone & CloseCurlyQuote; Favorite Avenger Hawkeye (okay, maybe just my favorite Avenger) is getting its own show. Vision and Wanda spin-off, only to set up Doctor Stange’s next film. And Marvel Discovery and CloseCurlyQuote; s (TSX-V: MARV) Serpent River / Pecors and Wicheeda North properties are split and become Power One.
Okay, the latter might not be a superhero spin-off, but Power One looks like a SHIELD-esque operation.
The spinout I’m referring to is the April decision from Marvel & CloseCurlyQuote; divest two of their properties into their wholly owned subsidiary Power One. The decision was approved by a shareholder vote on April 23, 2021, with 17,827,570 votes in favor against 1,297,416 votes against.
The deal will send Marvel shareholders & CloseCurlyQuote; one share of Power One for every five MARV shares they own, and Power One will issue Marvel 5,000,000 Power One shares. So if you are a Marvel shareholder and your primary focus was on these two properties, fear not, because you will end up with stocks. Through the spin-off, Power One assumes certain responsibilities related to the acquisition, exploration or maintenance of the properties.
Last Friday, the BC Supreme Court Order and CloseCurlyQuote; authorizing the spin-out has entered into force. Power One shares will be awarded based on Marvel shareholding on May 7, 2021.
The Serpent River property (also known as the Pecors East zone) consists of 10 mining claims in the Sault Ste. Marie Mining Division, Elliot Lake area, northern Ontario, has approximately 115 units while covering 1,840 hectares.
Last December, they received an extension of their drilling license from the Department of Energy, Northern Development and Mines (ENDM) on the Serpent Rivers property, allowing them to further explore the property.
At the time, the president and CEO of Marvel & CloseCurlyQuote; s, Karim Rayani, said: “The extension of the drilling license will allow us to return to our Pecors Ni-Cu-PGE project to study the extent and nature of the significant results of 2015. This appears to be a new source of PGE mineralization in an area close to the success of Grid Metals and Canadian Palladium. & CloseCurlyDoubleQuote;
To regular readers of Equity Guru, the other property involved in the spin-out, the Wicheeda North Project, will sound familiar. It is & CloseCurlyQuote; because it borders Defense metals (TSX-V: DEFN) Wicheeda Rare Earth Elements (REE) Project. Recently, DEFN has received inquiries from international REE smelter and separator companies and is working with SGS on a hydrometallurgy pilot test at their facility in Lakefield, Ontario. Because the two projects are limiting each other, once Defense Metals starts getting their test results, that should give Power One a sense of how good their property is.
The Wicheeda North property is located in British Columbia and in the Cariboo mining division of CloseCurlyQuote; s, approximately 80 km northeast of the city of Prince George and 50 km east of Bear Lake. The property is accessed by an all-weather gravel road and is close to vital infrastructure, such as power lines, railroads and highways.
In 2010, Aeroquest conducted an airborne geophysical survey over portions of the Wicheeda North property. The assessment report at the time states that “the electromagnetic data suggests that there may be an unmapped fault in the center of the block. Magnetic data shows a subtle feature in the center of the block, slightly offset from the interpreted fault. It is recommended that the airborne survey be followed by a geochemical survey and property scale mapping. & CloseCurlyDoubleQuote;
Marvel says it intends to confirm the mineralization reported on its claims with its own sampling program.
Marvel has also been in the news recently with developments on the Blackfly Gold Project. On May 6, they announced that they had received their work permit for the Blackfly property and were starting to explore the project. On May 7, Rayani said the team was on the ground at the site and expected drilling to begin within 30 days. Their 2021 exploration plan is to drill up to 2,000 m.
In their press release announcing that they had received their permits, Marvel made sure to note that they had been set up to take advantage of all historical data at the site and that they had redesigned the geophysical surveys that had been carried out on the property, including their own investigation conducted last year.
The property has hosted prospectors and explorers since the late 19th century when, in 1897, gold was first discovered on the property, and the following year, the 45-foot well of the project & CloseCurlyQuote; its sunk. The grades around the well were between 80 and 167 g / t gold.
Now Marvel is pursuing a 5km extension that Rayani describes as “high quality and CloseCurlyDoubleQuote; and notes that this area has never been drilled. There have been many drilling efforts over the years, however, with the most recent being done by Terra-X in 2012. In their drilling, Terra-X averaged between 5 and 20 grams on their holes. Rayani also said that because the data is up to date, they may use it in the future.
“We are delighted to begin our activities on the Blackfly Gold Project, & CloseCurlyDoubleQuote; said Karim Rayani. “The property has a rich history dating back to 1898, geological mapping indicates alteration / mineralization for a distance of up to 5 km, historic well grades have been reported up to 167 g / t Au. Thanks to our recent airborne geophysical surveys and the results of all previous exploration programs, the exploration team at Marvel & CloseCurlyQuote; will focus on the highest priority targets. & CloseCurlyDoubleQuote;
The Blackfly Gold Project is located near Atikokan, Ontario, and consists of 64 unpatented mining claims totaling 1,296 hectares of land. The property is located along and in the Marmion Lake fault zone, approximately 13.6 km southwest along the strike of Agnico Eagle’s Hammond Reef gold deposit and CloseCurlyQuote. The Agnico Eagle deposit & CloseCurlyQuote; s contains 4.5 million measured or indicated ounces of gold.
The property borders Falcon Gold and CloseCurlyQuote; s (TSX-V: FG) Central Canada Project, and, again, if that name rings any bells for longtime Equity Guru readers, it’s & CloseCurlyQuote; this is because Falcon Gold is another company covered by Equity Guru. And the connection between Falcon and Marvel doesn’t end there. Discerning readers may have recognized the name Rayani & CloseCurlyQuote; from the start, because in addition to being the CEO of Marvel Discoveries, Rayani is also the CEO of Falcon Gold.
So how did Rayani do as CEO of Falcon? Well, when he took over, their stock price was barely $ 0.03. Now? it may not have exploded on the moon, but it’s currently $ 0.095 and even hit $ 0.25 in August. The people who bought Falcon when Rayani took over as CEO will have seen their investments more than triple.
Coincidentally, Falcon Gold also recently began exploration at the mine in central Canada. This area is one to watch, and with their plans to begin drilling on the Blackfly project soon, we should see some interesting results on the horizon.
Following the news of the acquisition by Marvel & CloseCurlyQuote; of the Wicheeda North property and subsequent spin-out, MARV shares fell from $ 0.07 to $ 0.15, but fell back to $ 0.105.
FULL DISCLOSURE: Marvel Discovery Corp. and Falcon Gold Corp. are customers of Stockhouse Publishing.