(Kitco News) - On Thursday, Comet Resources (ASX: CRL) announced that it has executed an amended binding agreement to acquire a 100% interest in the Mt Margaret copper project from Mount Isa Mines, a wholly-owned subsidiary of Glencore.
Comet said it will acquire 100% of the owner of the project in exchange for the issuance of 98,550,000 shares at a deemed issue price of A$0.20 per share (on a post-consolidation basis), resulting in an acquisition value of A$19.71 million.
Located near Cloncurry, Queensland, 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.
The project is only 7km away from key processing infrastructure at Ernest Henry, where Mt Margaret ore was previously processed into export quality copper concentrate, the company noted.
The project's JORC open-pit resources amounted to 13.0Mt at 0.78% copper and 0.24g/t gold with >95% in the measured and indicated categories.
Importantly, the company said that the project has a near-term production potential, with 2 open pits already pre-stripped, adding that there is also a significant potential for resource growth through further exploration.
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 rationalization of a global tier one miner.”
Comet Resources is a base metals, precious metals and industrials exploration and development company focused on projects in Australia.
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