Komet Resources Inc.

Komet Resources Inc.

June 08, 2015 08:36 ET

Komet Resources Inc.: Closure of a 2 M$ Private Placement

QUEBEC CITY, QUEBEC--(Marketwired - June 8, 2015) - Komet Resources Inc. ("Komet" or the "Company") (TSX VENTURE:KMT) announces the closure of a 2 M$ private placement in the form of convertible debentures as published on March 31, 2015.

A total amount of two million dollars (2,000,000 CAD) was closed with private investors, among which 25% are insiders of the Company, including Mr Robert Wares and Mr Pierre Colas (see press release dated March 31, 2015). This funding will be used among other things for the current exploration work on the Guiro property in Burkina Faso.

The convertible debentures will have a five-year term from the closing date of the offering and will bear an interest rate of 12% per year, calculated from the issue date and payable semi-annually (the "debentures"). At its discretion and up to three times before the due date, the Company can pay the accrued interests of the shares issued, based on the market price on the date of the payment. At any time prior to maturity date and at the discretion of the subscriber, the debentures are convertible into common shares of the Company at a conversion price of 0.65 CAD per common share. After the end of the third year, the Company has the right to force the conversion of the debentures in the event that the Company shares are traded at more than 1.00 CAD per share for more than 10 consecutive days. The Company paid a finder's fee amounting 65,000 CAD.

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.

Final Order Passed by the Burkina Faso Authorities

The order passed March 25, 2015 (see press release dated March 31) was officially delivered on Monday, May 18, 2015 (see the document [French only]). Komet wants to humbly thank again the Government, especially Mr Boubakar BA, the Minister of Mines and Energy, as well as the Burkina Faso population for the trust they placed in the Company, a trust that will be honoured and respected by the Company.

More information about the corporation is available at: www.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.

Contact Information

  • Investors relations and information:
    Andre Gagne
    President and CEO
    Skype : andregagne11