- Share Purchase Plan to raise $500,000 to existing eligible shareholders oversubscribed, raising $2.3m
- $500,000 worth of oversubscriptions have been accepted under the Share Purchase Plan with approximately 180 shareholders participating
- Funds raised under the Share Purchase Plan are in addition to the $2,000,000 raised under the placement to sophisticated and professional investors completed in September 2020
Comet Resources Limited (Comet or the Company) (ASX:CRL) is pleased to announce that it has received applications from existing shareholders for $2.3 million at an offer price of $0.02 per share under its Share Purchase Plan (SPP), which closed on Thursday 1 October 2020.
Due to the strong demand from shareholders for the SPP offer, with oversubscriptions of $1.8 million being received, the Company has decided to accept over subscriptions of $500,000 meaning the SPP will raise a total of $1,000,000 before costs of the offer. As this figure is still below the level of subscriptions received, the Company applied a scale back which was pro-rata above the base subscription amount of $2,000 on the basis of the relative shareholdings of the applicants for offer. The new shares are expected to be allotted on Tuesday 6 October 2020. The new shares to be issued under the SPP will rank equally with existing Comet fully paid ordinary shares on issue.
The SPP follows the successful completion of the $2,000,000 Placement to institutional and sophisticated investors. 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 the strong support from our shareholders for the SPP following on from the great response we had to our recent $2m 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.”
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 $0.02 per share. 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.
This announcement has been authorised by the Board of Comet Resources Limited.