Regulatory Delays in Mali Cast Shadow Over Marvel Gold’s Project Sale

Strategic Divestment in Mali

Marvel Gold Limited (ASX – MVL) has taken a decisive step to streamline its portfolio by entering into a binding Memorandum of Understanding (MOU) to sell its 100% interest in the Yanfolila Gold Project in Mali. The buyer, Askiya Mineral Resources S.A.R.L, a locally based mining company, will acquire the project for a total consideration of up to US$1.94 million, structured through a series of milestone payments tied to resource development.

Deal Structure and Conditions

The transaction includes an upfront, non-refundable option fee of US$25,000, followed by staged payments upon exercising the option and subsequent milestones. Notably, additional payments of up to US$1 million are contingent on Askiya confirming inferred mineral resources of at least 1 million ounces of gold on the project or other future permits. This performance-based structure aligns incentives for exploration success while limiting Marvel's immediate exposure.

Completion of the sale depends on the renewal and official transfer of the mining tenements by the Mali Mining Cadastre, which is currently undergoing operational disruptions. Marvel has committed to facilitating this process and ensuring no actions prejudice the renewal, but the timing remains uncertain given regulatory complexities in Mali.

Refocusing on Tanzania

Executive Director Timothy Strong emphasized that the divestment aligns with Marvel’s broader strategy to exit legacy assets in Mali and concentrate resources on the Hanang Gold Project in Tanzania. With Askiya’s strong local presence and expertise, Marvel appears confident that Yanfolila will be advanced effectively under new ownership. This move allows Marvel to sharpen its focus on projects with potentially higher returns and fewer geopolitical risks.

Background and Outlook

Marvel had previously consolidated full ownership of Yanfolila by acquiring the remaining 20% interest from B2Gold in 2023, pending regulatory approvals. The sale now passes the baton to Askiya, which is positioned to undertake further technical and legal due diligence during a 30-day option period. Investors will be watching closely how the tenement renewals progress and whether Askiya can unlock the project’s resource potential.

This transaction underscores the challenges and opportunities of operating in West Africa’s mining sector, where regulatory and operational hurdles can impact timelines but also create value for nimble local operators.