Comet Resources Limited announced a private placement of Series A Secured Convertible Loans and Series B Secured Convertible Loans for the gross proceeds of AUD 1,500,000 on July 26, 2023. The transaction will include participation from new investor International Graphite Limited. International Graphite Limited will invest AUD 250,000.

The term of the Series A Secured Convertible Loans and Series B Secured Convertible Loans is 12 months. Interest is payable at 8% per annum. The conversion price is AUD 0.09 per share.

The Company will allow for the conversion of up to AUD 933,650 of Series A Secured Convertible Loans into shares for 10,373,887 new shares based on a conversion price of AUD 0.09 per share. The 5,186,943 options (1 for 2) will require shareholder approval to be issued. Conversion of all Series B Secured Convertible Loans into shares and issue of 1 for 2 options will require shareholder approval.

A maximum of 6,292,780 new shares based on conversion of AUD 566,350 of Series B Secured Convertible Loans at a conversion price of AUD 0.09 per share and 3,146,390 options (1 for 2) would be issued subject to shareholder approval. A placing fee of 4%, plus GST where applicable, for funds raised via the Convertible Loan. Comet Resources Limited has now submitted an application to the ASX setting out its recapitalization strategy to seek re-instatement of its shares to trading.