The transaction remains subject to customary conditions including signing of a definitive agreement, completion of satisfactory due diligence and receipt of TSX-V approval

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Komet signs agreement for the sale of the Dabia Sud Property in Mali. (Credit: Free-Photos from Pixabay.)

Les Ressources Komet is pleased to announce that it 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 (“Roscan”; TSX-V: ROS). Komet Mali SARL owns the Dabia Sud project, comprising 35 km2 of concessions with very promising gold exploration potential and located adjacent to Roscan’s Kandiole property.

Roscan shares issued in the transaction will be subject to a voluntary hold period for 6 months after the closing date. It is also expected that Komet will enter into a voting trust agreement with Roscan pursuant to which it will agree to vote the Purchase Shares in favour of management’s recommendations.

The transaction remains subject to customary conditions including signing of a definitive agreement, completion of satisfactory due diligence and receipt of TSX-V approval. Trading in shares of Komet could remain halted until the Company has received final approval from the TSX-V.

Closing of this arm’s length transaction is slated for May 21, 2020.

Robert Wares, President and Chairman of Komet Resources, stated: “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.”

Nana Sangmuah, President and CEO of Roscan, stated, “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 data base 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 maximize the value of this to be acquired asset and our highly prospective land package in Mali.”

 

Source: Company Press Release