Comet Resources Ltd (ASX:CRL) has received commitments for a placement to raise $1 million, bringing several new strategic shareholders to the register and providing additional cash to support exploration activities at projects in Australia and Mexico.
This will enable Comet to expand its exploration scope at the Barraba Project in NSW to include further exploration at the historic Murchison Mine in addition to planned exploration works at the historic Gulf Creek mine.
Funds raised will also be used to support work at the Santa Teresa Project in Baja California, Mexico, which is prospective for high-grade gold, as well as for working capital purposes.
Increase in scope of works
Managing director Matthew O’Kane said: “With the planned increase in scope of works at the Barraba project to now also include the historic Murchison Mine in addition to the Gulf Creek mine area, we took the opportunity to execute the placement to bring on board some new strategic investors who we feel will provide ongoing benefit through their association with the business moving forward.”
The placement is priced at a 10% discount to the last closing price of comet shares on February 4, 2021, and will see the issue of 50 million new shares at 2 cents per share.
Peloton Capital Pty Ltd is engaged as the lead manager to the placement and will receive a distribution fee of 6% on monies raised.