Comet obtains $742,000 in loans for Iron Mask

Executive Summary

• Comet Industries Ltd. secured approximately $742,000 in short-term construction financing to fund the subdivision of its Iron Mask project in Kamloops, BC.
• The financing consists of two unsecured promissory notes totaling $742,000, bearing 10% annual interest and maturing on March 17, 2027.
• The transaction is classified as a related-party transaction involving directors Michael O'Reilly and Jess Alfonso, with exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.

Key Details

• Total Financing Amount: Approximately $742,000 in short-term loans.
• Purpose: Construction financing for the subdivision of the Iron Mask project in Kamloops, BC.
• Lenders: Schore Holdings Ltd. (controlled by Michael O'Reilly) and Seamark Development Corp. (controlled by Jess Alfonso).
• Instrument Terms:
  • Two promissory notes dated March 17, 2026.
  • Unsecured obligations.
  • Interest rate: 10% per annum.
  • Maturity Date: March 17, 2027.
• Prepayment Terms: The company may prepay all amounts owing prior to maturity, subject to a minimum interest payment of $35,000 to each lender.
• Related-Party Status:
  • Michael O'Reilly (Director/Officer) controls Schore Holdings Ltd.
  • Jess Alfonso (Director) controls Seamark Development Corp.
  • Both insiders abstained from the board vote approving the loans.
• Regulatory Compliance:
  • Relied on exemptions from formal valuation and minority shareholder approval under MI 61-101 (sections 5.5(a) and 5.7(1)(a)).
  • Exemptions applied because the fair market value of the consideration involving related parties did not exceed 25% of the company's market capitalization.
  • No material change report was filed 21 days prior to closing as insider confirmation was received shortly before completion.

Notable Quotes

• None provided in the text.