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

Under the SPP, eligible Comet shareholders will have the opportunity to apply for up to $30,000 of new shares at an offer price of 0.2 cents per new share.

Comet Resources Ltd - Comet Resources successfully completes placement and initiates share purchase plan
Shares issued under the placement will rank equally with existing Comet ordinary shares from their date of issue

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 O’Kane said: “It was great to see strong support for the placement as an endorsement of the company’s 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 company’s 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 company’s 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.

Share purchase plan

Under the SPP, eligible Comet shareholders with a registered address in Australia or New Zealand on Comet’s register as at 5.00pm (AWST) on Wednesday, September 9, 2020, will have the opportunity to apply for up to $30,000 of new shares at an offer price of 0.2 cents per new share.

The price equates to around a 10.13% discount to the 5-day volume-weighted average market price of the company’s shares as traded on the ASX immediately prior to the announcement of the SPP.

Quick facts: Comet Resources Ltd

Price: 0.019 AUD

ASX:CRL
Market: ASX
Market Cap: $10.44 m
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