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  • Comet Ridge (ASX:COI) has received binding commitments for a $10 million placement ahead of an extra $3 million via a share purchase plan
  • A total of 52.6 million shares will be issued at a price of $0.19 which represents a 10 per cent discount to the 5-day average price of $0.21 per share
  • Funds raised will be used for Comet Ridge’s Mahalo projects, Galilee Project, and general working capital
  • Shareholders will also have the opportunity to participate in a share purchase plan to raise an additional $3 million
  • Comet Ridge’s share price is currently down 13.3 per cent with shares trading for 19.5 cents apiece

Comet Ridge has received binding commitments for a $10 million placement ahead of launching a share purchase plan to raise an additional $3 million.

A total of 52.6 million shares will be issued at a price of $0.19 which represents a 10 per cent discount to the 5-day volume-weighted average price of $0.21 per share.

Funds from the placement will be used for the Mahalo North CSG Project, the Mahalo Gas Project, the Galilee “Deeps” Project, and general costs and working capital purposes.

Managing Director Tor McCaul is pleased with the support received from the placement which will be used to accelerate Comet Ridge’s plans to supply gas to Australia’s east coast gas market.

“First gas from our flagship Mahalo Gas Project by late 2021 remains our highest priority, but at the same time we are pursuing early production opportunities at Mahalo North to achieve scale economies, higher overall offtake and higher value for stakeholders in the project,” Tor said.

“This capital raising also enables the company to progress the certification of gas reserves at Mahalo North and for our Albany wells in the Galilee Deeps,” he added.

In regards to the share purchase plan eligible shareholders will be entitled to apply between $2000 and $30,000 worth of shares and $0.19 per share. This is subject to an overall cap of $3 million.

Any additional funds raised from the share purchase plan will be applied to Comet Ridge’s working capital.

Comet Ridge’s share price is currently down 13.3 per cent with shares trading for 19.5 cents apiece in a $163.7 million market cap.

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