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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 released its June quarterly report, highlighting the proposed acquisition of the Santa Teresa High Grade Gold Project
  • The base metals explorer also outlined the acquisition of the Barraba Copper Project and a completed $650,000 capital raising
  • In early June, Comet announced that it had executed a binding heads of agreement with El Alamo Resources to acquire the Santa Teresa Gold Project
  • The company is aiming to complete the acquisition in Q3 once a decision to mine has been made
  • Further, Comet will begin initial drilling and exploration programs at the newly acquired Barraba Copper Project in late Q3 or early Q4
  • Comet Resources is currently down 5.56 per cent with shares trading for 1.7 cents each

Comet Resources (CRL) has released its June quarterly report, highlighting the proposed acquisition of the Santa Teresa High Grade Gold Project.

The base metals explorers also outlined the acquisition of the Barraba Copper Project and a completed $650,000 capital raising.

Santa Teresa acquisition

In early June, Comet announced that it had executed a binding heads of agreement with El Alamo Resources to acquire the Santa Teresa Gold Project.

Santa Teresa is made up of two mineral claims that span a total area of 202 hectares.

The project lies within the gold rich El Alamo district, 250 kilometres southeast of San Diego in California and 100 kilometres southeast of Ensenada in Baja California, Mexico.

Santa Teresa is prospective for high-grade gold and has an existing inferred resource of 64,000 ounces of gold at an average grade of 8.7g/t.

At the same time of the agreement, Comet announced it had also executed a non-binding term sheet with Raptor Capital International to receive up to US$20 million (around A$27.8 million) in funding.

The acquisition will be completed on a staged basis with 50 per cent being acquired once due diligence has been completed and Comet receives US$6 million (around A$8.36 million) from Raptor.

The remaining 50 per cent will be acquired once a decision to mine has been made and Comet is aiming to complete the acquisition during Q3.

Barraba Copper project acquisition

In mid-April, Comet completed the acquisition of the Barraba Copper Project and a $650,000 capital raise.

The Barraba Project is located near the town of Barraba, 550 kilometres north of Sydney and spans an area of 2375 hectares.

This project lies along the Peel Fault line which is known to host volcanic massive sulphide (VMS) style mineralisation such as zinc, lead, copper, and precious metals.

Comet Resources will begin its initial drilling and exploration program once final permits received and it’s expected to begin in late Q3 or early Q4.

The Capital raise

In regards to the placement, a total of 56.5 million fully paid ordinary shares were issued at a price of one cent each.

In addition, 65 million free attaching one for one placement options were also issued. These are exercisable at two cents and expire on June 30.

“Q2 has been a transformative period for Comet. Early in the quarter we announced the completion of the acquisition of the Barraba Copper Project in Northern NSW and a $650,000 capital raise,” Managing Director Matthew O’Kane commented.

“In early June we also announced the proposed acquisition of the Santa Teresa High Grade Gold Project. Due diligence work is advancing and we are aiming to close the transaction during Q3 and thereafter moving into field activities as soon as possible,” he said.

Comet Resources is currently down 5.56 per cent with shares trading for 1.7 cents each at 1:06 pm AEST.

CRL by the numbers
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