
April 03, 2022
Comet Resources Limited (Comet or Company) (ASX: CRL) is pleased to announce that it has executed a binding agreement to acquire a 100% interest in the Mt Margaret Copper Project and associated regional tenements near Cloncurry, Queensland (Project or Mt Margaret) from Mount Isa Mines Limited, a wholly-owned subsidiary of Glencore Plc (Acquisition).
HIGHLIGHTS:
- Comet to acquire 100% of Mt Margaret Copper Project from Glencore
- The Mt Margaret Copper Project successfully produced from open pit mining from 2012 until 2014, when operations were suspended due to the copper price environment and outlook at that time
- Located only 7km from key processing infrastructure at Ernest Henry, where Mt Margaret ore was previously processed into export quality copper concentrate
- JORC open-pit Resources of 13.0Mt at 0.78% copper and 0.24g/t gold with >95% in the Measured and Indicated categories'
- Near-term production potential — 2 open-pit deposits are already pre-stripped
- Significant potential for resource growth through further exploration
- Defined high priority exploration targets — both extensional and regional
- The Company to raise approx. $50 million to fund acquisition and initial post-acquisition pre-development activities
Managing Director, Matthew O'Kane commented, "Acquisition of the Mt Margaret Copper Project is a truly transformational event for Comet. Mt Margaret is a substantial past-producing copper mine that we've been able to acquire due to portfolio rationalisation of a global tier one mining company. It contains existing Mineral Resources of 13.0Mt at approximately 1% copper equivalent', with over 95% of this resource in the Measured and Indicated categories. The majority of Mt Margaret's Resource sits in two already pre-stripped open-pits providing reduced capex pathways to production."
ACQUISITION OVERVIEW
Comet has entered into a share sale agreement (MTM Acquisition Agreement) with Minerals Mining and Metallurgy Limited (ACN 645 972 309) (MMM), Mount Isa Mines Limited (ACN 009 661 447) (MIM) and Mount Margaret Mining Pty Ltd (ACN 150 366 224) (MTM) pursuant to which MIM has agreed to sell, and MMM has agreed to buy, 100% of the issued capital in MTM (MTM Shares). MTM is the owner of the Project. Neither MMM, MIM or MTM are related parties of the Company.
The consideration for the acquisition of the MTM Shares is:
- a non-refundable payment by MMM of $5,000,000 to MIM; and(ii) on completion, the issue by Comet (such issue to be procured by MMM) of 25,000,000 to MIM; and
- on completion, the issue by Comet (such issue to be procured by MMM) of 25,000,000fully paid ordinary shares in the capital of Comet (Shares) to MIM (or its nominee) (at an aggregate deemed issue price for those Shares of $0.20 per Share, equal to an amount of $5,000,000.
In addition, the Company has entered into a share sale agreement (MMM Acquisition Agreement) with MMM and the current shareholders of MMM (MMM Vendors) pursuant to which the MMM Vendors have agreed to sell, and the Company has agreed to buy, 100% of the issued capital in MMM. The consideration for the acquisition of the MMM Shares is 73,550,000 Shares (Consideration Shares) and 36,775,000 options to acquire Shares (Consideration Options), to be issued to the MMM Vendors and new shareholders of MMM since execution of the MMM Acquisition Agreement as follows:
Summaries of the key terms of the MTM Acquisition Agreement and MMM Acquisition Agreement are set out in Annexure A to this announcement.
Click here for the full ASX Release
This article includes content from Comet Resources Limited , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CRL:AU
The Conversation (0)
25 February 2021
Comet Resources
Battery Commodities for the Low-Carbon Revolution
Working to develop resource projects including gold, copper and graphite.
13h
Trilogy Metals Shares Rocket as US Government Takes Stake in Alaska Project
The US government is making a rare direct investment in a Canadian mining company, taking a 10 percent stake in Vancouver-based Trilogy Metals (TSX:TMQ,ARCA:TMQ) as part of a US$35.6 million deal to accelerate the development of Alaska’s Upper Kobuk Mineral Projects (UKMP)In an announcement... Keep Reading...
06 October
AFDG - Embracing US strategy, acquisition of Butembo copper deposit in the DRC. Copper added to draft list of US strategic minerals
African Discovery Group (OTC:AFDG) ("AFDG" or the "Company") has signed a term sheet to acquire the Butembo Copper exploration license in the Democratic Republic of Congo (DRC) by acquiring 100% of the shares of SOCIETE GRABIN MINING SAS (the "Transaction"). With this proposed acquisition, AFDG... Keep Reading...
02 October
ACG Amends Terms of Gediktepe Royalty Agreement to Support Transition from Gold to Copper Production
ACG announces that the net smelter return royalty agreement dated 17 July 2019 (the "Royalty Agreement") originally entered into between Lidya Madencilik Sanayi ve Ticaret A.Åž. (which assigned its interest to ACG Holdco 1 Limited), Polimetal Madencilik Sanayi ve Ticaret A.Åž. ("Polimetal") and... Keep Reading...
01 October
African Discovery Group
AFRICAN DISCOVERY GROUP, INC. (AFDG or the "Company") acquired 100% of African Discovery Group, Inc., a Delaware corporation, in November, 2020. The Company's previous South African car rental business was spun off to the Company's former principals. Through its 100%-owned subsidiary, the... Keep Reading...
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00