Comet Resources Limited (ASX:CRL) signed a binding heads of agreement to acquire La Sorpresa III Tenement from American International Ventures, Inc. (OTCPK:AIVN) for AUD 1.1 million on May 19, 2021. Upon completion of the transaction, the La Sorpresa III Tenement will be transferred from American International Ventures Mexican subsidiary into a newly established Mexican Company, Newco. Comet has a 90-day exclusivity period under the heads of agreement to conduct due diligence in return for payment of a non-refundable exclusivity fee of AUD 0.025 million.

Pursuant to the agreement, Comet has the right to acquire a 51% interest in the Tenement through acquiring 51% of the shares in Newco free from encumbrances, in consideration for Comet paying AIVN a total of AUD 0.6 million to be satisfied as AUD 0.4 million in Comet Shares at an issue price equal to the 20-day VWAP prior to First Completion and AUD 0.2 million in cash at First Completion. Pursuant to the agreement, Comet will have the right to acquire the remaining 49% interest in the Tenement at any time after First Completion through acquiring the remaining 49% of the shares in Newco free from encumbrances, in consideration for Comet paying AIVN a total of AUD 0.5 million to be satisfied as AUD 0.3 million in Comet Shares at an issue price equal to the 20 day VWAP prior to Second Completion and AUD 0.2 million in cash at Second Completion and Newco granting to AIVN a 1.5% net smelter return royalty.