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Comet Resources completes first tranche of placement to raise $2 million

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

Comet Resources Ltd -
Comet Resources is a precious and base metals explorer

Comet Resources Ltd (ASX:CRL) has completed the first tranche of its placement, comprising 100 million shares at a price of 2 cents per share to raise $2 million before costs.

Funds will be used to advance the high-grade Santa Teresa Gold Project in Baja California, Mexico, as well as the Barraba Copper Project in New South Wales.

The company is also offering existing shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP) to raise up to $500,000.

Shares issued

Today, the company issued 98.5 million shares to institutional and sophisticated investors under the placement to raise $1.97 million under ASX Listing Rules 7.1 and 7.1A.

The remaining 1.5 million shares in excess of the company’s current 7.1 and 7.1A capacity will be issued either at the completion of the SPP, should the amount of shares issued under the SPP provide the increased 7.1 and 7.1A capacity to do so, or upon receiving shareholder approval at the annual general meeting.

These shares represent:

  • A 10% discount to the closing price on September 2, the last trading day prior to announcement of the placement of Comet shares of $0.022; and
  • A 13.8% discount to the 15-day trading Volume Weighted Average Price (VWAP) of the shares on the date of issue, being $0.0228.

The SPP offer period opened on Thursday, September 10, and is expected to close at 5.00pm (AWST) on Thursday, October 1.

Streaming facility

This capital raising follows the company executing binding documents with Raptor Capital International Limited for a streaming facility to provide a minimum of US$6 million and up to US$20 million in funding for development of the high-grade Santa Teresa Gold Project.

The facility will become available after a certain conditions precedent are met, including Comet making a decision to mine at the project.

Quick facts: Comet Resources Ltd

Price: 0.025 AUD

ASX:CRL
Market: ASX
Market Cap: $13.56 m
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