- Final agreement now executed with shareholders of El Alamo Resources
- First stage of acquisition completed – Comet is now 50% owner of the Santa Teresa Gold Project1
- Comet has the option to increase ownership to 100% within 2 years
- 32 diamond holes have been drilled2 delivering numerous high-grade gold intersections including:
- 2m @ 32.4g/t gold from 19m
- 1m @ 958.4g/t gold from 239m
- 2.5m @ 38g/t gold from 174m
- 3.9m @ 39g/t gold from 121m
- 3m @ 19.9g/t gold from 214m
- 1m @ 125.9 g/t gold from 83m
- 3.1 @ 14.4g/t gold from 59m
- 3.1m @ 16g/t gold from 101m
- Work to commence on re-assaying of historic drill core and preparation of a JORC compliant Mineral Resource estimate
- Historical production in the surrounding El Alamo district estimated between 100,000 to 200,000oz gold
- Exploration upside and opportunity to extend current mineralisation due to the under-explored nature of the tenements
- Stream Financing agreement with Raptor Capital International Limited in advanced stage of documentation and expected to complete in the near-term
Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased to announce that it has executed a Share Purchase and Joint Venture Agreement (SPA) with the shareholders of El Alamo Resources Limited (EARL) for the 100% acquisition (Acquisition) of the Santa Teresa Gold Project (Project). Documentation of the binding gold streaming and royalty financing (Financing) with Raptor Capital International Limited (Raptor) to fund activities at the Project for up to US$20 million (initial minimum of US$6 million) is advanced and is expected to complete in the near-term.
Comet Managing Director, Matthew O’Kane, commented, “From the initial announcement of this transaction to closing, the gold price has increased over US$200 per ounce. This has increased the potential value of Santa Teresa for Comet and we are now looking forward to commencing work on the historical drill core and a maiden JORC resource. In parallel, we will plan our initial field activities. The relatively under explored nature of the Project and the richness of the district provides a lot of scope to extend mineralisation.”
1 Subject to shareholder approval for the issue of the consideration shares. Comet has negotiated an accelerated acquisition of its initial 50% interest in the Santa Teresa Gold Project by agreeing that the certain conditions precedent to the acquisition be treated as conditions subsequent. Refer to Annexure A for further details.
2 Refer to the Company’s release of 9 June 2020 for results of all 32 drill holes.
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