The company has completed the acquisition under amended terms that include a reduction in consideration shares to $200,000 from $450,000.
An initial drilling program is expected to begin once current COVID-19 travel restrictions are eased.
Initial field exploration
Comet's managing director Matthew O’Kane said: “I’m very pleased that we have been able to work with our advisors and the vendors of the Barraba project to come up with terms that enable us to continue with the acquisition and proceed with a placement that is sized to reflect current market conditions.
“I am now looking forward to the initial field exploration program at Barraba as soon as logistical and regulatory conditions permit.”
Copper to increase in demand
Comet believes that copper is set to see an increase in demand due to the global efforts to reduce emissions from the transport network and from generation of renewable electricity.
Copper is not only an important part of the batteries used in battery electric vehicles (BEV) but is also used extensively in the electric motors that drive the wheels of BEVs and is also used intensively in the generation of electricity from renewables, such as solar and wind.
There is also significant potential for post-COVID-19 fiscal spending initiatives by governments to provide further demand for copper.
Regional geology of the Barraba Copper Project
The Barraba Copper Project has never been systematically tested by modern exploration techniques.
The initial exploration program will include drill testing of areas below the historically identified deposits, plus high-level exploration targets delineated by an induced polarisation (IP) survey of parts of the licence area that were never followed up.
To complement the drill testing Comet will also complete downhole geophysics with the aim of providing additional information about potential parallel and blind lodes, in addition to the known historical lodes.
As volcanogenic massive sulphide (VMS) deposits often occur in clusters, the company is excited about the potential for new discoveries on the Barraba project, through new exploration and testing the extent of the previously discovered and partially mined lodes.
Known to host VMS-style mineralisation
The 2,375-hectare exploration licence that covers the project area (EL8492) is near the town of Barraba, about 550 kilometres north of Sydney.
It sits along the Peel Fault line and encompasses the historical Gulf Creek and Murchison copper mines.
The region is known to host VMS-style mineralisation containing copper, zinc, lead and precious metals.
Historical workings at Gulf Creek produced high-grade copper and zinc for a short period around the turn of the 19th century, and this area will form a key part of the initial exploration focus.
A portion of the placement will be conducted under the company’s current ASX placement capacity through the issue of 54 million shares at a price of 1 cent per share with the balance of 11 million shares to be issued following receipt of shareholder approval.
A notice of general meeting will be lodged shortly seeking shareholder approval for the issue of these placement shares as well as for the free attaching 1 for 1 placement options expiring June 30, 2021, and exercisable at 2 cents.
This capital raise replaces the previously announced capital raise at 2.5 cents per share on February 18.
Empire Capital Partners Pty Ltd was engaged as the lead manager to the offer and will receive a distribution fee of 6% on monies raised and a $35,000 lead manager fee.
Subject to shareholder approval, the company will issue Empire, a number of options that is equal to 6% of the options to be issued under the capital raising on the same terms and conditions.