Comet Resources Limited (Comet or the Company) (ASX:CRL), is pleased provide the Quarterly Activities Report and Appendix 5B for the quarter ending 30 June 2022 (the Quarter).
Highlights:
- Announcement of the proposed acquisition of the Mount Margaret Copper Project from Glencore
- International Graphite (IG) IPO completed in early April 2022. Comet now a major shareholder in IG.
- International Graphite’s technology has been recognised by and received strong support from the WA Government, with a recent award of a $2M grant to contribute to the development of the Collie facility.
- National Native Title Tribunal (NNTT) action initiated by the Company to obtain access to Native Title areas of Barraba Copper Project has been determined in favour of Comet.
- Access has been granted to the Barraba Copper Project with no further conditions by the NNTT paving the way for Comet to now move to final permits for exploration activities at the historic Gulf Creek Mine at the Barraba project.
Post Quarter End:
- EGM scheduled to approve the Mount Margaret Copper Project acquisition postponed pending agreement on revised transaction structure
Matthew O’Kane, Managing Director of Comet Resources, commented “During the quarter work was focussed primarily on the proposed acquisition of the Mount Margaret Copper Project, however we also had the milestone of the successful IPO of International Graphite on the ASX, with Comet now owning approximately 25% of newly listed company, and we also received the favourable result from the NNTT providing us a pathway to exploration at the Barraba Copper Project in NSW. Recently we announced the deferral of the EGM scheduled to approve the acquisition of the Mount Margaret Copper Project as we work through agreeing changes to enhance the transaction structure while still meeting the requirement of Glencore. We are working through this process now with all stakeholders, including the ASX, and we hope to be able to provide an update to shareholders shortly.”
Mt Margaret Copper Project:
As announced on 21 July 2022 the Company has been working on changes to the original transaction structure to acquire the Mount Margaret Copper Project which we believe will enhance the outcome for all stakeholders. The changes to the structure of the transaction have now reached a level of non-binding agreement between Comet and Glencore and are currently in the process of being documented in revised binding agreements. We hope to be able to announce revised transaction terms to shareholders shortly.
International Graphite:
During the Quarter, the Company completed its participation in the creation of a vertically integrated high-technology battery anode product business located in Western Australia via a transaction with International Graphite Limited (International Graphite or IG) which completed its Initial Public Offering (IPO) on the ASX on 7 April 2022. Comet vended its Springdale Graphite Project into International Graphite in return for shares initially valued at $8M upon completion of the IPO (based on. 20c IPO price per share). The transaction will see Comet now participate in both the value created by the graphite resource itself, as well as the substantial value created by downstream processing into end user products.
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