Marvel Gold (ASX:MVL) signed two binding agreements to acquire 100% of the issued capital of Tanzanian company Cobra Resources for $200,000 cash and the issue of company shares worth $175,000 upon completion, according to a Friday filing with the Australian bourse.

Cobra Resources owns the Hanang gold project, where multiple high-priority targets were identified, the filing said.

The company also received firm commitments to raise AU$4.2 million through a two-tranche placement of 529.4 million shares priced at AU$0.008 apiece.

The proceeds will be used to fund the acquisition, exploration activities at the Hanang project, and general working capital, per the filing.

Marvel Gold shares were down 9% in afternoon trade Friday.