Funds will be used for a diamond drilling program to infill and extend the high-grade component of the existing resource at its Springdale Project.
Springfield's 15.6 million tonnes grading 6% total graphitic carbon (TGC) JORC resource includes a high-grade component of 2.6 million tonnes trading 17.5% TGC.
Core from the diamond drilling will also be used to conduct metallurgical test work to optimise the processing circuit to produce a high-grade graphite concentrate.
Participants in the placement also will receive a one-for-two option exercisable at 6 cents expiring 30 June 2021.
Focus on upgrading the high-grade component
Comet Resources CEO, Philippa Leggat said: “We have all the key elements of a really exciting project at Springdale.
"Our focus going forward is to upgrade and expand the existing shallow, high-grade component of the Inferred Resource to between three and four million tonnes in Indicated and also conduct metallurgical testwork to optimise the simple float circuit.
“In addition to the infill drilling and metallurgical programs, the Company will follow up on two high-grade discoveries recently made outside the current resource.
“Comet will also look to further utilise the highly successful EM survey work to target additional shallow high-grade mineralisation.
“The board and I would like to thank all the investors who have supported our strategy to advance the Springdale Project and to get Comet flying.”
Last week, Comet identified a large graphite exploration target adjacent to the existing resource at the Springdale Graphite Project.
With the new target appearing to be a repeat of the graphite-bearing stratigraphy that hosts the resource, Comet is confident of building on the Springdale asset.
The project already has an inferred resource of 15.6 million tonnes at 6% Total Graphitic Carbon (TGC), including a high-grade portion of 2.6 million tonnes at 17.5% TGC.
Proactive caught up with Comet in May 2019 for an update.