Comet Resources Ltd (ASX:CRL) has received firm commitments for $2M pursuant to the proposed acquisition of a new copper exploration project in NSW, Australia.
- Comet has received a strong endorsement for its recently announced Barraba Copper Project acquisition in the form of firm commitments for the $2M capital raising contemplated
- Capital raising satisfies the key condition precedent to progress the acquisition
- Company will now move to seek shareholder approval for the acquisition
- Copper is one of most widely used metals in the world and is aligned with Comet’s strategic focus on battery electric vehicle (BEV) commodities
- Initial drilling program on the Barraba Project planned for Q2 2020
- Metallurgical work streams progressing on the Springdale Graphite Project. Results expected Q1/2
Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased to advise that it has received firm commitments for $2M pursuant to the proposed acquisition of a new copper exploration project in NSW, Australia. The Company will now lodge a Notice of General Meeting, seeking shareholder approval for the acquisition and the capital raising.
Comet Managing Director, Matthew O’Kane, commented” “The strong support for this capital raising is a great endorsement from investors for the Barraba Copper Project acquisition and Comet’s evolving strategy. We’re already planning an active exploration program for Q2, including an initial drilling program.”
The Barraba Copper Project has never been systematically tested by modern exploration techniques. Our 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 license area that were never followed up. To complement the drill testing we 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, we are excited about the potential for new discoveries on the Barraba Copper Project though new exploration works and testing the extent of the previously discovered and partially mined lodes.
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 also from generation of renewable electricity. Copper is not only an important part the batteries used in BEV’s, 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. The Company believes that the Barraba copper project complements its existing Springdale graphite project due to their shared end uses in batteries for BEV’s, and better utilises available board and management resources with the aim of driving shareholder value.
Summary of the Capital Raising:
Under the terms of the offer the Company has received firm commitments for the issuance of 80,000,000 fully paid shares at a subscription price of 2.5 cents per share. The Company will also issue subscribers one unlisted option with a strike price of 3.5 cents and an expiry of 30 June 2021 for each share issued under the offer. The capital raising is subject to shareholder approval. The Company expects to lodge the notice of meeting for the general meeting shortly.
Summary of the Barraba Copper Project
The 2,375ha exploration license that covers the project area, EL8492, is located near the town of Barraba, approximately 550km north of Sydney. It sits along the Peel Fault line and encompasses the historic 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.