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Comet Resources launches $500,000 share purchase plan to take capital raising to $2.5 million

Capital raising funds will be used for ongoing exploration at the company’s Santa Teresa Gold Project, Barraba Copper Project and Springdale Graphite Project.

Comet Resources Ltd - Comet Resources launches $500,000 share purchase plan, taking capital raising to $2.5 million
Eligible shareholders may each apply for a minimum of $2,000 and maximum of $30,000 worth of shares

Comet Resources Limited (ASX:CRL) has invited eligible shareholders to participate in the company’s capital raising activities, launching a share purchase plan (SPP) to raise $500,000.

This comes after Comet received commitments for the placement of 100 million new fully paid ordinary shares at a price of 0.2 cents per new share, to eligible sophisticated and institutional investors to raise $2 million.

In conjunction with the placement, the SPP will provide the company with additional funds of up to $2.5 million which will primarily be used to fund increasing exploration activities at the Santa Teresa Gold Project and the Barraba Copper Project.

Share purchase plan

The SPP entitles eligible shareholders, irrespective of the size of their shareholding, to purchase up to $30,000 worth of shares at the same issue price as the placement.

This price equates to around a 10% 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.

Eligible shareholders may each apply for a maximum of $30,000 and a minimum of $2,000 worth of shares under the plan and must submit application forms by the closing date of 5.00pm (AWST), Thursday, October 1, 2020.

Eligible shareholders may participate by selecting only one of the offers to purchase shares.

Option to scale back

Whilst Comet intends to raise $500,000 under the plan, the company reserves the right to accept additional applications subject to shareholder demand.

However, the maximum number of shares which can be issued under the SPP is limited by the ASX Listing Rules to a maximum of 114,750,000 shares, which is equal to 30% of the company’s existing issued share capital.

Depending on applications received, the company may, in its absolute discretion, undertake a scale back so that not more than $500,000 is raised under the plan or not more than 30% of that number of shares already on issue, are issued under the plan.

Shortfall placement

In the event that less than $500,000 is applied for under the plan, it is not intended that the shortfall will be placed, as the company does not currently have capacity under ASX Listing Rules 7.1 or 7.1A to enable it to do so.

Where more than $500,000 is applied for under the plan, the company may place any shortfall at the price at any time during the period of 3 months following the close of the offer (subject to the company having capacity to do so under ASX Listing Rules 7.1 or 7.1A at the relevant time).

Indicative timetable.

As well as maintaining ongoing work at Springdale Graphite Project, the capital raising will also cover any payment of costs associated with the plan and placement and fund general working capital.

Quick facts: Comet Resources Ltd

Price: 0.019 AUD

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