Comet Resources Limited announced that it has executed an amended binding agreement to acquire a 100% interest in the Mt Margaret Copper Project and associated regional tenements near Cloncurry, Queensland (Project or Mt Margaret) from Mount Isa Mines Limited, a wholly-owned subsidiary of Glencore Plc (Acquisition). Comet has entered into an amended and restated share sale agreement (MTM Acquisition Agreement) with Minerals Mining and Metallurgy Limited (ACN 645 972 309) (MMM), Mount Isa Mines Limited (ACN 009 661 447) (MIM) and Mount Margaret Mining Pty Ltd. (ACN 150 366 224) (MTM) pursuant to which MIM has agreed to sell, and MMM has agreed to buy, 100% of the issued capital in MTM (MTM Shares). MTM is the owner of the Project.

Neither MMM, MIM or MTM are related parties of the Company. The consideration for the acquisition of the MTM Shares is: a non-refundable payment by MMM of $5,000,000 to MIM (paid on 18 February 2022); on completion, the issue by Comet (such issue to be procured by MMM) of 25,000,000 fully paid ordinary shares in the capital of Comet (Shares) to MIM (or its nominee) (at an aggregate deemed issue price for those Shares of $0.20 per Share, equal to an amount of $5,000,000; on completion, the issue by Comet (such issue to be procured by MMM) of 10,000,000 options exercisable at $0.30 per option on or before the date which is 5 years from issue; and a 2% net smelter return royalty from the sale of any copper, gold or silver extracted, produced and sold from the Mount Margaret Project for the life of the mine. At completion of the Acquisition, MIM has agreed to make a loan available to MMM in the amount of AUD 27,000,000 (the Loan) for the sole purpose of MMM using these funds to replace the Environmental Bond at completion.

The difference between the current Environmental Bond liability of AUD 32,341,120 and the Loan amount will be funded by Comet from the proceeds of its capital raising. The addition of the Loan improves the transaction structure by reducing the size of the equity raise required to complete the Acquisition, thereby reducing up-front dilution to shareholders, and allows the Company time to advance and de-risk the project before further equity is raised. Options for re-payment of the Loan at maturity include future equity raises, repayment via alternative debt financing or cash flows from operations should the Company return the Project to production, or a combination thereof.

A decision will be made on the method of repayment of the Loan in the future.