Comet acquire copper project from Glencore

Highlights:

• Comet to acquire 100% of Mt Margaret copper project from Glencore under improved transaction terms.
• The company will now raise US$27 million to fund acquisition and initial post-acquisition predevelopment activities – equity component of the raise is now reduced due to addition of debt financing.
• Equity raise includes a US$5 million priority offer to existing Comet shareholders.
• Glencore will provide a 3 year loan of US$27 million to Comet – inclusion of the loan delivers Comet shareholders substantially reduced up front dilution.
• The Mt Margaret copper project successfully produced from open pit mining from 2012 until 2014, when operations were suspended due to the copper price environment and outlook at that time.
• Located only 7 km from key processing infrastructure at Ernest Henry, where Mt Margaret ore was previously processed into export quality copper concentrate.
• JORC open-pit resources of 13.0 million t at 0.78% copper and 0.24g/t gold with >95% in the measured and indicated categories.
• Near-term production potential – 2 open pits already pre-stripped.
• Significant potential for resource growth through further exploration.
• Defined high priority exploration targets – both extensional and regional.

Managing Director, Matthew O’Kane commented:

“The acquisition of Mt Margaret remains a truly transformational opportunity for Comet. It’s a substantial past-producing copper mine that we’re able to acquire due to portfolio rationalisation of a global tier one miner. It contains existing mineral resources of 13.0 million t, with over 95% of this resource in the measured and indicated categories. The majority of Mt Margaret’s resource sits in two already pre-stripped open pits, providing Comet with a reduced capex pathway to production. The transaction now comprises both debt and equity, significantly improving the transaction structure for our shareholders by substantially reducing up front dilution due to the reduction in the amount of equity required to be raised initially.”

Read the article online at: https://www.globalminingreview.com/mining/20092022/comet-acquire-copper-project-from-glencore/