Komet Resources Inc.

Komet Resources Inc.

April 09, 2014 07:30 ET

Komet Resources Inc.: Clarification for the March 27th 2014 Press Release

''Non-Disclosure Agreement and Due Diligence for a Burkina Faso mining property''

QUÉBEC CITY, QUÉBEC--(Marketwired - April 9, 2014) - As requested by IIROC (Investment Industry Regulatory Organization of Canada) and in accordance to the regulation in force, Komet Resources Inc. (TSX VENTURE:KMT) confirm that there is no consideration decided and no terms or deal are done concerning the property referred. There is no certainty if an agreement will be concluded to acquire the property mentioned or any other property.

The Non-Disclosure Agreement and the Due Diligence that were mentioned in the last press release have been signed to receive all information that the owners have in their possession and to confirm as much as possible the data is valid. Also, a Memorandum of Understanding, considered as a Non-Binding Letter of Intention, was signed during Mr. Gagné presence in Africa to assure the seller will wait until June 1st 2014 before the right to negotiate with any other party.

The Memorandum of Understanding states that:

  • The seller will sell all and only assets, including the production permit and mining equipment
  • The buyer will reimburse in totality two loans contracted in two different banks in Burkina Faso
  • The buyer will reimburse all debts to any Burkina Faso Government's agencies/authorities
  • The projected maximum price is 8 million Canadian dollars minus all debts/charges/taxes/fees/royalties including all future reclamations
  • The seller will receive 1.2% of gold sale over the market price of 1300$CAN/once up to the price minus charges as explained previously
  • The sale needs to be approved by Komet Resources' Board
  • The MOU is valid until June 1st, 2014

A Burkina Faso private company is the owner of the permit which operated, until July 2013, a small scale mine (according to the regulation in force in Burkina Faso should be 100 ton per day and less). There was a feasibility study released in 1997 by European Mining Finance but not in compliance with 43-101 National Instrument.

The next steps will be the finalization of the Due Diligence, the complete study of the project by a Qualified Person (QP) and the Board's approbation.

Finally, Komet will open a permanent office in Burkina Faso Capital city, Ouagadougou, as soon as we find an adequate place to do so.

More information is available at: www.kometgold.com

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.

Contact Information

  • Investors relations and informations:
    Andre Gagne, President and CEO
    Skype : andregagne11