Comet Resources completes $2 million placement and initiates share purchase plan

Comet Resources Limited (ASX:CRL) has received commitments for a placement of 100 million new fully paid ordinary shares to eligible sophisticated and institutional investors to raise $2 million, before costs.

The placement at 0.2 cents per new share was priced at a 9.52% discount to the last closing price of Comet shares on September 2, 2020.

This placement was well supported by new and existing sophisticated investors and the company is pleased to welcome strategic investors on to the register.

Comet now proposes to offer existing eligible shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP) to raise up to $500,000.

Funding drilling

Proceeds from the capital raising will be used to fund activities at the Santa Teresa Gold Project and the Barraba Copper Project, as well as for working capital purposes.

Comet managing director Matthew OKane said: “It was great to see strong support for the placement as an endorsement of the companys recent acquisitions.

“We are looking forward to commencing exploration including drilling, first at the Barraba Cooper Project once the final permits are issued, and then moving on to the Santa Teresa Gold Project as soon as possible afterwards.”

Placement details

The placement shares are intended to be issued under the companys refreshed capacity pursuant to ASX Listing Rule 7.1 and 7.1A.

The shares to be issued under 7.1A are conditional on the minimum pricing condition under ASX listing rule 7.1A.3 being satisfied.

Where this does not occur, the issue of those placement shares will be subject to shareholder approval at the companys forthcoming annual general meeting (AGM).

Peloton Capital Pty Ltd is engaged as the lead manager to the placement and will receive a distribution fee of 6% on monies raised.

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