- Cohiba Minerals (CHK) has earned a 51 per cent interest in Olympic Domain’s Iron Oxide Copper Gold (IOCG) tenements in South Australia
- Cohiba has now satisfied stage two farm-in conditions to spend at least $1 million and earn its 51 per cent stake
- These tenements are located within the Stuart Shelf, which hosts major Iron Oxide Copper Gold deposits
- The area is prospective for significant copper, gold, uranium, rare earth elements, and silver
- Additionally, Cohiba has chosen to extend its rights issue closure date by one week to May 15
- The company is raising roughly $1.35 million for exploration and working capital
- Cohiba Minerals is up a healthy 20 per cent and shares are trading for 0.6 cents each
Cohiba Minerals (CHK) has exceeded its stage two expenditure obligation by $80,000 to earn-in a 51 per cent interest in Olympic Domain’s tenements.
The companies first struck a farm-in agreement in March 2018 which would allow Cohiba to earn an interest in Olympic’s seven exploration tenements in South Australia.
The tenements include; Lake Torrens A, Lake Torrens B, Lake Torrens C, Lake Torrens D, Sandy Point, Horse Well, and Pernatty B and C
These tenements cover an approximate 1094 square kilometres are located within the Stuart Shelf, which hosts major Iron Oxide Copper Gold (IOCG) deposits containing large quantities of iron oxides (hematite and magnetite), significant copper, gold, uranium, rare earth elements, and silver.
In the first year, Cohiba had to spend at least $500,000 on exploration to earn a 30 per cent stake in these tenements. These conditions were satisfied in February 2019.
To earn 51 per cent, Cohiba had to spend at least $1 million.
“We have worked tirelessly to achieve our 51% interest in the Olympic Domain tenements and have utilised shareholder funds in the most efficient manner possible,” Chairman Avi Kimelman said.
The company is currently planning a drilling program at Pernatty C following encouraging results from recent surveys.
Cohiba has also received some encouraging initial results from enhanced interpretation of its Horse Well magnetotellurics (MT) survey and will provide updates in due course.
Non-renounceable rights issue extension
The company has extended the closing date of its current non-renounceable rights issue by one week to Friday 15 May.
This is due to the timing of the Stage two completion and a recent increase in shareholder enquiries.
The one-for-two rights issue was first announced on March 30 to raise roughly $1.35 million at an offer price of 0.4 cents per share. The maximum number of fully paid ordinary shares to be issued will be 332,307,121.
The funds will be used for exploration and general working capital.
Cohiba Minerals is up a healthy 20 per cent and shares are trading for 0.6 cents at 10:43 am AEST.