Komet Resources announce a small financing

Komet Resources {TSX.V: KMT} announced the closing of the first tranche of a private placement.

They raised CAD $592,000 through accredited investors and a director participating.

 

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Comment

When Komet presented in London just over a year ago, they estimated they would make CAD $10 million during 2017, and were discussing their intention to pay a dividend!

Move forward one year and that target has been missed by a country mile, and now they are raising money!

A bit disappointing, to say the least, so we’ll have to watch to see if they can bed in their new equipment,and turn a profit in 2018.

 

 

 

Québec City, January 25, 2018 – Komet Resources Inc. {TSX.V: KMT} is pleased to announce that it has closed the first tranche of a non-brokered private placement with accredited investors as well as with a director of Komet (the “Insider”) by issuing 1,600,500 units (the “Units”) at a price of $0.37 per Unit, for total gross proceeds to Komet of $592,585. Each Unit consists of one common share (a “Common Share”) and one-half common share purchase warrant. Each Warrant entitles the holder to purchase one additional Common Share of the Corporation at a price of $0.45 for 12 months from the closing date of the private placement (the “Closing Date”).

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Securities issued under the private placement will be subject to a four-month hold period from the Closing Date.

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Komet will use the private placement proceeds to accelerate the exploration of his properties following the positive results and the favorable gold price.

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The Insiders’ participation for 1 million units is exempt from the formal valuation and minority shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”) in accordance with sections 5.5 (a) and 5.7 (1) (a) of Regulation 61-101. The exemption is based on the fact that neither the fair market value of the private placement, nor the consideration paid by such Insiders exceeds 25% of the market capitalization of the Corporation. The Corporation did not file a material change report at least 21 days prior to the completion of the private placement since the Insiders’ participation was not determined at that moment.

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The private placement was carried out pursuant to prospectus exemptions of applicable securities laws and is subject to final acceptance by the TSX Venture Exchange.

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As a result of the private placement, 67,807,342 common shares of Komet are issued and outstanding.

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