- Comet Resources has placed an offer to buy a new copper exploration project in New South Wales
- Comet believes copper will see an increase in demand due to global efforts to reduce emissions from the transport network
- The company aims to raise $2 million to help fund the project
- Comet is up 4.17 per cent this morning, trading at 2.5¢ apiece
Comet Resources (CRL) has put in an offer to purchase a new copper exploration project in New South Wales.
The company has a right to acquire 8 per cent of interest in the project for $150,000 cash and $450,000 in shares. It will also have to commit to a minimum of drilling and exploring for over 18 months.
The minimum exploration commitment is $600,000 with a minimum of 1250 metres of RC or Diamond drilling to be completed to earn the 80 per cent interest.
Comet then has the right to earn the remaining 20 per cent interest in the first 36 months for $2.6 million.
The 2,375 hectares exploration license, is located near the town of Barraba, approximately 550 kilometres north of Sydney.
It sits along the Peel Fault line and is surrounded by the historic Gulf Creek and Murchison copper mines. Past work at Gulf Creek produced high-grade copper and zinc for a short period around the 19th century, and this area will form a key part of the company's initial exploration focus.
The region is known to host volcanogenic massive sulphide style mineralisation containing copper, zinc, lead and precious metals.
Comet believes copper is set to see an increase in demand due to global efforts to reduce emissions from the transport network and also from the generation of electricity.
"Copper is not only an important part of the batteries used in battery electric vehicles (BEV’s), but is also used extensively in the electric motors that drive the wheels of BEVs, and is also used intensively in the generation of electricity from renewables, such as solar and wind," the company said.
The company aims to raise $2 million in a placement to help fund the project.
"It is an exciting opportunity for Comet to be able to acquire the Barraba Project as it is in a prospective location and hosts a number of drill-ready targets," Managing Director Matthew O'Kane said.
"We will be working hard to be in a position to test the project’s prospectivity as soon as possible after completion," he added.
Comet is up 4.17 per cent this morning, trading at 2.5¢ apiece at 12:37 pm AEDT