QUEBEC CITY, QUEBEC -- (Marketwired) -- Komet Resources inc. (TSX VENTURE: KMT) ("Komet" or the "Company") announce that the 100% owned subsidiary Komet Ressources Afrique SA has signed a subcontracting agreement with STREMCO SA to start works at Guiro Mine until the permit transfer has been finalized by the Burkina Faso government. A Preliminary Economic Assessment (PEA) will be filed in accordance with the regulations.
This agreement provides that Komet Africa Resources SA agrees to undertake immediately the necessary research for resource definition. The company will cover the renovation costs of the underground mine respecting Canadian standards, upgrade the gravimetric and VAT leaching process and the operation cost. All new crushing, grinding and gravity recovery equipment are subject to a preliminary study currently underway. Meanwhile, metallurgical studies are in progress and reports will be completed in the coming weeks.
Komet will grant Stremco SA a gross royalty of 2% of gold sales made above the amount of one thousand and three hundred Canadian dollars per once ($1,300 CAD) (spot price). These royalties will be deducted from the existing agreement which provides for a maximum of two million Canadian dollars ($ 2,000,000 CAD) (see press release dated July 24, 2014)
The subcontracting agreement will terminate upon the final transfer of the license has been endorsed by the Burkinabe authorities.
Business as usual in Burkina Faso
Komet confirmed that recently reported unrest in Burkina Faso has not caused any disruptions to normal course of the operations.
More information about the corporation 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.