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Comet Resources (ASX:CRL) - Managing Director, Matthew O'Kane
Managing Director, Matthew O'Kane
Source: The Market Herald
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  • Comet Resources (CRL) has entered an option agreement with Bath Resources to acquire a portfolio of copper-gold assets in the Northern Territory
  • Together, the projects cover about 840 square kilometres of ground yet have seen limited exploration
  • Comet sees this purchase as highly beneficial to its existing projects as it may position the company at the forefront of rising demand for copper
  • The company has already paid Bath a $50,000 deposit for a 45-day exclusivity option and will pay another $50,000 once the agreement has completed
  • Additionally, Comet will issue $850,000 worth of its shares across three consideration payments — each with their own conditions
  • Comet is up 4.17 per cent and shares are trading at 2.5 cents

Comet Resources (CRL) has entered an option agreement with Bath Resources to acquire a portfolio of copper-gold assets in the Northern Territory.

The assets include the Oonagalabi, Paradise Well and Silver Valley projects which collectively cover roughly 840 square kilometres.

Oonagalabi

The Oonagalabi Project contains a 1.7-kilometre strike of outcropping copper, zinc and lead mineralisation.

Only one of the 22 existing holes have been drilled since 1981 and there’s been very limited drilling of primary mineralisation.

However, the limited historical drilling returned 36.6 metres at one per cent copper and 1.7 per cent zinc from 1.5 metres and five metres at 1.26 per cent copper and 1.22 per cent zinc from 70 metres.

Comet aims to carry out exploration work to target the primary mineralisation and drill targets to potentially define a mineral resource.

Paradise Well

The Paradise Well Project covers 250 square kilometres and lies 10 kilometres south of the Oonagalabi exploration licence.

Two prospects within the project were discovered through historical rock chip sampling which returned grades of up 8.88 per cent copper and 2.15g/t gold. Neither areas have seen ground geophysical work or drilling — presenting an opportunity for follow-up work.

Silver Valley

The Silver Valley copper-gold-silver-lead tenement is located 300 kilometres north of the Oonagalabi Project and sits within the Davenport province.

Key prospects in the area include the Chablo prospect which is prospective for lead, silver, copper and gold. Significantly, one rock chip sample returned 554g/t silver, 20 per cent lead, 11.9 per cent copper and 2.0g/t gold.

Rationale

Comet already owns a portfolio of copper and gold projects and considers this acquisition to be strategic in further developing and complementing its assets.

“Being located in Australia, they complement our existing copper and base metals project at Barraba in NSW, and provide Comet with increased exposure to copper upside, which we believe will continue to strengthen as a result of increase global infrastructure spending and the transition to clean energy,” Managing Director Matthew O’Kane said.

Importantly, copper will reportedly experience an increased demand due to the global efforts to reduce carbon emissions. So, with a number of copper projects under its belt, Comet could be at the forefront of supporting the forecasted demand.

Terms

Comet Resources has already paid Bath Resources a $50,000 deposit for a 45-day exclusivity option over the portfolio.

Additionally, Comet will pay another $50,000 once the agreement has been completed.

Excluding these cash payments, the company will issue Bath $850,000 worth of its shares but this will be broken up into three consideration payments.

Comet is up 4.17 per cent and shares are trading at 2.5 cents at 12:11 pm AEDT.

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