Comet Resources Ltd (ASX:CRL) is pleased provide an update on the progress of its due diligence workstreams
Comet Resources Ltd (Comet or the Company) (ASX:CRL) is pleased provide an update on the progress of its due diligence workstreams related to the binding heads of agreement (HOA) with privately owned El Alamo Resources Limited (EARL) for the proposed 100% acquisition (Acquisition) of the Santa Teresa Gold Project (Project), and the concurrently executed non-binding term sheet with Raptor Capital International Limited (Raptor) for a gold streaming and royalty financing (Financing) to fund activities at the Project for up to US$20 million (initial minimum of US$6 million).
Comet Managing Director, Matthew O’Kane, commented, “Over the last 4 weeks since we announced the signing of the HoA for the Santa Teresa Gold Project and Raptor financing, we have been working hard on advancing the due diligence work streams with a view to completing them as soon as possible. I am focussed on completing all required work in Q3 and am looking forward to finalising the transaction in what is shaping up to be a very interesting gold market in the second half of this year. Comet is in discussions with professional mining consultancy firms with resources in country, who will be able to manage the Company’s planned work programs following completion of the acquisition.”
The Acquisition will be completed on a staged basis, with Comet acquiring a 50% interest upon satisfaction of due diligence and the initial US$6 million Financing being made available to the Company, with the remaining 50% interest to be acquired upon a decision to mine. Please refer to the Company’s announcement of June 9, 2020, for full details of the proposed acquisition. Since the Company’s initial announcement of the Acquisition, the Company has agreed the deemed issue price of Shares as consideration for the Acquisition. The deemed issue price of Shares for the Company’s acquisition of the first 50% interest in the Project will be $0.025 per Share and the deemed issue price of Shares for the second 50% interest will be equal to the volume weighted average price of Shares over the 20 days prior to the date of
issue of the Shares.