28 July 2022
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Quarterly Activities Report - June 2022
Highlights:
- Announcement of the proposed acquisition of the Mount Margaret Copper Project from Glencore
- International Graphite (IG) IPO completed in early April 2022. Comet now a major shareholder in IG.
- International Graphite's technology has been recognised by and received strong support from the WA Government, with a recent award of a $2M grant to contribute to the development of the Collie facility.
- National Native Title Tribunal (NNTT) action initiated by the Company to obtain access to Native Title areas of Barraba Copper Project has been determined in favour of Comet.
- Access has been granted to the Barraba Copper Project with no further conditions by the NNTT paving the way for Comet to now move to final permits for exploration activities at the historic Gulf Creek Mine at the Barraba project.
Post Quarter End:
- EGM scheduled to approve the Mount Margaret Copper Project acquisition postponed pending agreement on revised transaction structure
Comet Resources Limited (Comet or the Company) (ASX:CRL), is pleased provide the Quarterly Activities Report and Appendix 5B for the quarter ending 30 June 2022 (the Quarter).
Matthew O'Kane, Managing Director of Comet Resources, commented "During the quarter work was focussed primarily on the proposed acquisition of the Mount Margaret Copper Project, however we also had the milestone of the successful IPO of International Graphite on the ASX, with Comet now owning approximately 25% of newly listed company, and we also received the favourable result from the NNTT providing us a pathway to exploration at the Barraba Copper Project in NSW. Recently we announced the deferral of the EGM scheduled to approve the acquisition of the Mount Margaret Copper Project as we work through agreeing changes to enhance the transaction structure while still meeting the requirement of Glencore. We are working through this process now with all stakeholders, including the ASX, and we hope to be able to provide an update to shareholders shortly."
Mt Margaret Copper Project:
As announced on 21 July 2022 the Company has been working on changes to the original transaction structure to acquire the Mount Margaret Copper Project which we believe will enhance the outcome for all stakeholders. The changes to the structure of the transaction have now reached a level of non-binding agreement between Comet and Glencore and are currently in the process of being documented in revised binding agreements. We hope to be able to announce revised transaction terms to shareholders shortly.
International Graphite:
During the Quarter, the Company completed its participation in the creation of a vertically integrated high-technology battery anode product business located in Western Australia via a transaction with International Graphite Limited (International Graphite or IG) which completed its Initial Public Offering
28 July 2022
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(IPO) on the ASX on 7 April 2022. Comet vended its Springdale Graphite Project into International Graphite in return for shares initially valued at $8M upon completion of the IPO (based on. 20c IPO price per share). The transaction will see Comet now participate in both the value created by the graphite resource itself, as well as the substantial value created by downstream processing into end user products.
IG will form a vertically integrated high-technology graphite business located in Western Australia to focus on the production of micronised, battery anode material and other products for lithium-ion batteries. Springdale is uniquely suited as a feedstock source for International Graphite's facility in Collie, Western Australia, not only due to its location but also due to the amenability of its graphite to be processed into high value products, such as battery anode material, based on the test work conducted in Germany at a specialised facility.
Barraba Copper Project:
During the quarter and as announced on 11 April 2022, CRL received favourable ruling from the NNTT following action bought by the Company in an effort to obtain access for exploration works to the area surrounding the historic Gulf Creek Mine at the Barraba Copper Project in NSW. After being unable to successfully negotiate access to this area of land for more than 12 months the Company was left with no option but to initiate an action at the NNTT to find a resolution.
The Tribunal has found in favour of the Company in the matter and has imposed no further conditions for access, which paves the way for the Company to now complete permitting for exploration activities in the area with the NSW government, and to subsequently begin exploration on the ground.
Post receipt of the NNTT decision the Company applied for Ministerial Consent to conduct exploration activities. This is required where the process of negotiation with Traditional Owners has not been resolved under the normal pathways and has instead been determined by the NNTT. This consent has now been received and our geologist has visited site to map out the location of the proposed drill holes and assess work required to access the planned drill hole locations and prepare them for drilling, such as earthworks required to establish safe access and level drilling areas. We are now submitting the planned drill hole's locations to the NSW Mining Exploration and Geoscience (MEG) office for approval prior to commencement of drilling activities. Funding to support the drilling work at Barraba is provided for within the funding that we will raise to close the proposed acquisition of the Mount Margaret Copper Project, and therefore drilling is planned commence shortly after close of that transaction. We will provide revised timing of expected commencement of drilling at Barraba once the announcement regarding changes to the proposed Mount Margaret transaction are released.
Further, the Company has agreed an amendment with the vendors to a key term of the agreement for the acquisition of the Barraba Copper Project relating to the requirement to meet a minimum expenditure condition on exploration within 18 months of the date of the initial transaction.
The key term of the acquisition for the Barraba Copper Project which was announced to the market in the Company's press releases on 23 January 2020 and 16 April 2020 has been varied as follows:
- the Purchaser shall satisfy the Minimum Expenditure Condition on Approved Exploration Expenditure, including the Minimum Drilling Requirement, within 12 months after the date of the favourable ruling by the National Native Title Tribunal, being 31 March 2022, therefore allowing the Purchaser until 31 March 2023 satisfy its obligations under clause 8 of the Agreement.
28 July 2022
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The Minimum Expenditure Condition requires that the Company expend a total amount of not less than $600,000 (excluding GST) on direct, 'in-ground' exploration activities on the Tenements which shall include a minimum of 1,250m of Diamond or Reverse Circulation drilling.
Corporate Activities:
Pursuant to Section 6 of the Appendix 5B, the Company paid $108k in executive and non-executive director fees, superannuation and wages to the board of Comet Resources Limited. Expenditure incurred from operating and investing activities during the Quarter relates to legal and technical due diligence in regard to project acquisitions, exploration costs and for general working capital purposes (the JUN Q Expenditure). A further breakdown is included below.
June Q Exploration Expenditure Summary
Project | Description | Amount | ||
($'000) | ||||
General exploration | • | Tenement access, administration and management | 38 | |
and Evaluation | • | Tenement Legal | ||
• Due diligence programs for project specific activities | and independent | |||
reports | ||||
• | Technical consulting fees | |||
• | Geological consultants | |||
Total | 38 | |||
June Q Administration and Staff Expenditure Summary
Description | Amount | |
($'000) | ||
• Accounting, Office Administration & rent, Audit and Secretarial | 51 | |
• | ASX Fees | 10 |
• | Non-executive Director Fees | 33 |
• | Managing Director Fees | 75 |
• Marketing, subscriptions, Investor relations, Printing and postage | 20 | |
• Other legal, admin and corporate | 63 | |
Total | 252 | |
This announcement has been authorised by the Board of Comet Resources Limited.
For further information please contact:
MATTHEW O'KANE
Managing Director
(08) 6489 1600
cometres.com.au
Suite 9, 330 Churchill Avenue Subiaco WA 6008
PO Box 866 Subiaco WA 6904
28 July 2022
For personal use only
About Comet Resources
Barraba Copper Project (NSW)
The 2,375ha exploration license that covers the project area, EL8492, is located near the town of Barraba, approximately 550km north of Sydney. It sits along the Peel Fault line and encompasses the historic Gulf Creek and Murchison copper mines. The region is known to host volcanogenic massive sulphide (VMS) style mineralisation containing copper, zinc, lead and precious metals. Historical workings at Gulf Creek produced high-grade copper and zinc for a short period around the turn of the 19th century, and this area will form a key part of the initial exploration focus.
Northern Territory Projects (NT)
The portfolio of Northern Territory exploration licenses and exploration license applications covers an area of approximately 840km2. Although historical exploration results were indicative of near surface gold and copper mineralisation, very limited modern exploration has occurred. Comet plans to utilise modern exploration techniques to rapidly advance the scale of known mineralisation, especially where known geophysical and geochemical anomalies exist that have not been comprehensively drill tested.
Forward-Looking Statement
This announcement includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Comet Resources Limited's planned exploration programs, corporate activities and any, and all, statements that are not historical facts. When used in this document, words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should" and similar expressions are forward-looking statements. Comet Resources Limited believes that its forward-looking statements are reasonable; however, forward looking statements involve risks and uncertainties and no assurance can be given that actual future results will be consistent with these forward-looking statements. All figures presented in this document are unaudited and this document does not contain any forecasts of profitability or loss.
Appendices
Tenement List | ||||
Project | Location | Tenement | Interest | |
Barraba | NSW | EL8492 | 80% | |
NT | EL32279 | 100% | ||
Northern Territory | ELA32664 | 100% | ||
Assets | ELA32190 | 100% | ||
ELA32241 | 100% |
Competent Person Statement
The information in this report that relates to Exploration Results and Mineral Resources Estimates is based on information compiled or reviewed by Ms Elizabeth Laursen (B. ESc (Hons)., GradDipAppFin, MAIG, MSEG). Ms Laursen is a member of the Australian Institute of Geoscientists. Ms Laursen has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves'. Mrs Laursen consents to the inclusion in this report of the matters based on their information in the form and context in which they appear.
ASX Listing Rules Compliance Statement
In preparing the Quarterly Report for the period ended 30 June 2022 and to date, the Company has relied on the following ASX announcements. This report contains information extracted from ASX releases and reports cited herein. These are available to view on the website. In relying on the above ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data
28 July 2022
that materially affects the information included in the abovementioned announcements or this Quarterly Report for the period ended 30 June 2022 and to date.
only | |||
ASX Announcement | 14/07/2022 | Extraordinary General Meeting Update | |
ASX Announcement | 27/05/2022 | Notice of General Meeting/Proxy Form | |
ASX Announcement | 11/04/2022 | Comet Gains Access to Barraba Copper Project | |
ASX Announcement | 04/04/2022 | Comet Acquires Strategic Qld Copper Project from Glencore | |
ASX Announcement | 27/10/2021 | CRL and International Graphite to create integrated business | |
ASX Announcement | 06/10/2021 | Comet adopts ESG Reporting | |
ASX Announcement | 11/05/2021 | Acquisition Completion of NT Copper Projects | |
ASX Announcement | 19/03/2021 | Acquisition of Highly Prospective Copper-Gold Project in NT | |
ASX Announcement | 02/03/2021 | Aeromagnetic Survey to Commence at Barraba Copper Project | |
ASX Announcement | 13/01/2021 | High Grade Copper and Zinc Mineralisation Confirmed | |
For personal use | ASX Announcement | 16/12/2020 | Santa Teresa Gold Project Drilling to Commence Q1 2021 |
ASX Announcement | 26/11/2020 | Extensive Surface Copper Mineralisation at Barraba Project | |
ASX Announcement | 21/08/2020 | Excellent Graphite Grades - Initial Metallurgical Test Work | |
ASX Announcement | 23/07/2020 | Barraba Copper Project Update | |
ASX Announcement | 16/04/2020 | Capital Raising Closed and Project Acquisition Completed | |
ASX Announcement | 23/01/2020 | Copper Project Acquisition | |
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Comet Resources Limited published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:27:06 UTC.