Comet Resources Ltd’s (ASX:CRL) Share Purchase Plan (SPP) for existing eligible shareholders to raise $500,000 has been strongly supported with subscriptions received for almost five times that amount.
After receiving applications from existing shareholders for $2.3 million at an offer price of 2 cents per share with around 180 shareholders participating, the company has accepted $500,000 in oversubscriptions to raise $1 million.
As this figure is below the level of subscriptions, a scale back was applied which was pro-rata above the base subscription amount of $2,000 on the basis of the relative shareholdings of the applicants for offer.
Funds raised under the Share Purchase Plan are in addition to the $2 million raised under the placement to sophisticated and professional investors completed last month
Looking to start exploration
Comet managing director Matthew O’Kane said: “It was great to see the strong support from our shareholders for the SPP following on from the great response we had to our recent $2 million placement.
“It provides further validation for the company’s recent project acquisitions.
“We are now looking forward to commencing exploration works as soon as possible at both the Barraba Copper Project and the Santa Teresa Gold Project.”
Use of funds
Proceeds raised will be used to fund activities at the company’s Santa Teresa Gold Project in Mexico and the Barraba Copper Project in northern NSW, as well as for working capital purposes.
The Santa Teresa Gold Project comprises two mineral claims totalling 202 hectares and is in the gold-rich El Alamo district, around 100 kilometres southeast of Ensenada, Baja California, Mexico.
This project is prospective for high-grade gold.
Barraba Copper Project is spread over 2,375 hectares and is around 550 kilometres north of Sydney in NSW.
The project sits along the Peel Fault line and encompasses the historic Gulf Creek and Murchison copper mines.
This region is known to host volcanogenic massive sulphide (VMS) style mineralisation containing copper, zinc, lead and precious metals.
The SPP allowed eligible shareholders to apply for a maximum of $30,000 and a minimum of $2,000 worth of shares at an issue price of cents per share.
New shares are expected to be allotted on Tuesday, October 6, 2020, and will be rank equally with existing Comet fully paid ordinary shares on issue.
Shareholder approval is not required for the issue shares under the SPP as these will be issued pursuant to ASX Listing Rule 7.2 exception 5.