Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased to announce it has received commitments for a placement of 100,000,000 new fully paid ordinary shares in Comet (Placement Shares) to eligible sophisticated and institutional investors at $0.02 per New Share (the Placement). The Placement will raise $2 million (before costs) and is priced at a 9.52% discount to the last closing price of Comet shares on 2 September 2020.

The Placement was well supported by new and existing sophisticated investors and the Company is pleased to welcome strategic investors on to the register. Proceeds raised will be used to fund activities at the Company’s Santa Teresa Gold Project and also the Barraba Copper Project, as well as for working capital purposes.

Comet Managing Director, Matthew O’Kane, commented “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.”

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 Placement 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). The Company is seeking to complete the Placement under its refreshed capacity following shareholder approval at the General Meeting of Shareholders (GM) to be held on 21 September 2020. Settlement of the Placement is expected shortly after the GM with allotment expected to occur and normal trading of those shares expected to commence thereafter. Placement Shares issued under the Placement will rank equally with existing Comet ordinary shares from their date of issue.

Share Purchase Plan

Comet proposes to offer existing eligible shareholders the opportunity to participate in a nonunderwritten share purchase plan (SPP) to raise up to $500,0001 . Under the SPP, eligible Comet shareholders, being shareholders with a registered address in Australia or New Zealand on Comet’s register as at 5.00pm (AWST) on Wednesday, 9 September 2020, will have the opportunity to apply for up to $30,000 of New Shares at an offer price of $0.02 per New Share. The SPP price equates to approximately 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.

The SPP offer period will open on Thursday, 10 September 2020 and is expected to close at 5.00pm (AWST) on Thursday, 1 October 2020.

The terms and conditions of the SPP will be set out in the SPP offer booklet, which is expected to be released to the ASX and dispatched to eligible shareholders via their preferred method of contact on Thursday, 10 September 2020.

1As the SPP is not underwritten, the SPP may raise more or less than this amount. If the SPP raises more than $500,000, Comet may decide in its absolute discretion to accept applications (in whole or in part) that result in the SPP raising more than $500,000. If Comet decides to conduct any scale back of applications, for example because the aggregate amount applied for under the SPP exceeds Comet’s requirements, the scale back will be applied on a pro rata basis to shareholdings of participating eligible shareholders at the record date for the SPP.

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