Comet Resources Limited (ASX:CRL) has swiftly closed a capital raising from sophisticated investors after collecting $562,500 in a share placement.
The Western Australian company, which is holding its annual meeting today, will issue 22.5 million fully paid ordinary shares (FPO) priced at 2.5 cents each under the placement.
Comet hopes to use funds raised with the placement to fuel a metallurgical test work program at its flagship Springdale Graphite Project.
Subiaco-based junior Comet will also issue 22.5 million free-attaching options on a one-for-one basis as part of the raising.
The options will have a 2.5-cent exercise price and be added to 102,750 options already in circulation that have 4-to-15-cents-a-share exercise prices.
The WA company’s capital raising for its lead project 30 kilometres from the Ravensthorpe shire town of Hopetoun is also designed to help it identify strategic opportunities to advance the project.
Comet managing director Matthew O’Kane highlighted “solid investor interest” in the capital raising had allowed the company to “close off the capital raise quickly”.
O’Kane said, “The funds from this raise combined with existing resources will provide the funding to continue the very critical metallurgical test work programs, as well as supporting ongoing efforts focused on identifying strategic relationships for the Springdale project.”
The company reported, “Comet will use the funds to continue to evaluate the results of recent drilling at the Springdale project.
“[This] will include metallurgical test work on core material from that campaign focused on classification of the material and test work regarding maximising recoveries, as well as value-added test work regarding battery applications and foil opportunities, in addition to general working capital expenditure.”
The company’s board has subscribed to $100,000 of the cap raise or 4 million shares and 4 million options.