AMN - MALI: Komet to sell Dabia Sud gold project

Komet Resources Inc has entered into a binding letter of intent under which it will sell all of the issued and outstanding shares of Komet Mali SARL, its wholly-owned Mali subsidiary, to Roscan Gold Corporation. Komet Mali SARL owns the Dabia Sud project, comprising 35sqkm of concessions with very promising gold exploration potential and located adjacent to Roscan’s Kandiole property.

Komet has a set of very promising properties adjacent to Roscan, to the northeast and west of Oklo Resources and this includes the near-surface Kabaya gold deposit containing a NI 43-101 resource of 105,000 ounces of indicated resources and 35,000 ounces of inferred resources.

This deposit was drilled at an average depth of 80 metres and remains fully open while there are several high priority targets on the property, including Kabaya, Disse and Walia.

The disposition price is C$3.2 million, of which 50% will be in cash and 50% in Roscan shares with the pricing of the shares to be made according to the 5-day VWAP of the Roscan Shares on the TSX-V, calculated as of the day prior to the closing date of the transaction.

The transaction remains subject to customary conditions including signing of a definitive agreement, completion of satisfactory due diligence and receipt of TSX-V approval. Closing of the arm’s length transaction is slated for May 21, 2020.

Komet Resources president and chairman Robert Wares said: “This transaction will provide our shareholders with exposure to a well-managed and successful gold exploration company in Mali.

"With a strong operating history, solid balance sheet and significant experience, Roscan’s management team is well-positioned to fund and continue to advance the project.

"The proceeds from this transaction will allow Komet to restructure and proceed with base and precious metal exploration programs in Eastern Canada.”

Roscan president and CEO Nana Sangmuah said: “We are delighted to work towards consolidating a key asset in this prolific mining district at a very attractive price for our shareholders.

"This acquisition will add an attractive mineral resource stage expansion portfolio with an extensive exploration database which can’t be understated. This provides an opportunity for Roscan to achieve new discoveries and delineate new resources in the Dabia Project.

"The company is in an excellent financial position to maximise the value of this to be acquired asset and our highly prospective land package in Mali.”

www.kometgold.com