Comet Resources (ASX:CRL) has received a letter from the Australian Securities Exchange (ASX) detailing the conditions to be met for reinstatement of its shares to trading.
In addition to preparation and lodgement of certain disclosures required in the reinstatement conditions, Comet Resources must start exploration work at the Barraba Copper Project as per plans submitted to the ASX and raise funds to meet the financial conditions required for reinstatement.
Regarding the start of exploration at the Barraba Project, Comet Resources reports it has already completed several recent site visits by both the company’s NSW-based geologist and drilling contractor to assess site conditions and confirm the ability for the drill rig to access the locations of the planned drill holes for the upcoming exploration program.
Once the final drilling permit for the program is received, which is anticipated to be approved during September, the company says it will be able to confirm a date for commencement of the drilling program.
In addition, Comet is required to raise funds as part of the reinstatement conditions. It must raise a minimum of $1 million in convertible loans and raise a minimum of just over $2.3 million by way of a 1 for 3 entitlement issue priced at $0.10 a share.
Proceeds from the capital raise will be used to settle existing payables of the company and to meet the working capital requirements for reinstatement.
Completion of the $1 million raise will require shareholder approval to issue options and shares associated with the convertible loans. Comet says these approvals will be addressed in the Notice of Meeting (NOM) to be lodged shortly.
Write to Adam Orlando at Mining.com.au
Images: Comet Resources