Komet Resources Inc.: $3-Million Private Placement
QUEBEC CITY, QUEBEC--(Marketwired - Apr 28, 2015) - Komet Resources Inc. ("Komet" or the "Company") (TSX VENTURE:KMT) announces its intention to complete a private placement Offering in Convertible Debentures, up to a maximum amount of C$3 million.
The Convertible Debentures mature 5 years from the closing date, and bear interest at a rate of 12% per annum, calculated from date of issue, payable semi-annually (the "Debentures"). Up to a maximum of 3 times prior to the maturity date, the company shall, at its discretion, pay accrued interest by issuing shares, based on market prices as of date of payment. The Debentures are convertible, at the option of the subscriber, at any time prior to the maturity date, into common shares of the Company at a conversion price of C$0.65 per Common Share. After the end of the third year, the Company has the right to force the conversion of the Debentures if its share is trading over C$1.00 for more than 10 consecutive days.
The closing of the Offering is subject to regulatory approvals, including the approval of the TSX Venture Exchange (the "Exchange"). The securities underlying the Debentures issued as part of this Offering will be subject to a four-month hold period from the closing date. Over 25% of the Offering may be subscribed to by insiders.
Komet will use these new funds to finance exploration work on the Guiro permit. An airborne magnetic survey is scheduled to take place and a drilling program will start shortly. Results from this drilling program will be used to complete a gold resource estimate of the Guiro deposit under the NI 43-101 standard. A historical feasibility study prepared by the EMF firm in 1997 stated, for the Guiro deposit, measured resources of 115,000 tons at 11.82 g/t Au, indicated resources of 129,000 tons at 13.36 g/t Au, as well as inferred resources of 94,000 tons at 7.83 g/t Au. The calculation was done using the triangle method on a longitudinal section of 280m at a depth of 80m. This estimate is not treated as current since a qualified person has not done sufficient work to classify it as current mineral resources. The Guiro deposit is contained within a quartz vein and its adjacent wall rocks.
Jacques Marchand, P.Eng. Geo., is the Qualified Person who has reviewed this news release and is responsible for the geological information presented there, including verification of the data disclosed.
More information about the corporation is available at: http://kometgold.com
Forward-Looking Statements
Neither TSX Venture Exchange nor the regulatory service provider (as the term is defined in TSX Venture Exchange's policies) accepts any liability of any kind as to the authenticity or accuracy of this release. - This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" as set out within the context of security law. This forward-looking information is subject to many risks and uncertainties, some of which are beyond Komet Inc.'s ("Komet") control. The actual results or conclusions may differ considerably from those that have been set out, or intimated, in this forward-looking information. There are many factors which may cause such disparity, especially the instability of metal market prices, the results of fluctuations in foreign currency exchange rates or in interest rates, poorly estimated reserves, environmental risks (stricter regulations), unforeseen geological situations, unfavorable extraction conditions, political risks brought on by mining in developing countries, regulatory and governmental policy changes (laws and policies), failure to obtain the requisite permits and approvals from government bodies, or any other risk relating to mining and development. There is no guarantee that the circumstances anticipated in this forward-looking information will occur, or if they do occur, how they will benefit Komet. The forward-looking information is based on the estimates and opinions of Komet's management at the time of the publication of the information and Komet does not assume any obligation to make public updates or modifications to any of the forward-looking statements, whether as a result of new information, future events, or any other cause, except if it is required by securities laws.
Outstanding stocks: 43,272,510
Contact
Investor relations and information:
Komet Resources Inc.
Andre Gagne, President and CEO
581-300-1666
a.gagne@kometgold.com / Skype: andregagne11
www.kometgold.com
