- Cohiba Minerals (CHK) has renewed a tenement in the Horse Well prospect which is part of the Olympic Domain Project in South Australia
- However, today’s news was met with farm-in partner, Olympic Domain, refusing to acknowledge that Cohiba has exceeded expenditure requirements
- Last month, Cohiba announced surpassing the $1.5 million minimum expenditure required to increase its 51 per cent stake in the Olympic Domain Project to 80 per cent
- The company believes its farm-in partner is stalling the next phase of the agreement until drilling results are released
- To ensure it takes its rightful 80 per cent stake, Cohiba plans to take legal action
- Company shares are up 7.69 per cent and are trading for 1.4 cents
Cohiba Minerals (CHK) has successfully renewed an exploration licence in the Horse Well area.
The Horse Well prospect is located within the Olympic Domain Project in South Australia.
Cohiba is conducting drilling at the prospect and has today announced one hole has just passed the 1095-metre mark. Pleasingly, this drill has showed evidence of hematite-quartz-K-feldspar breccia with some possible carbonate and blebby and disseminated chalcopyrite.
“We are excited about what we have seen to date and are continuing our drilling program at Horse Well, followed on by Pernatty C. It is also very pleasing to be able to renew one of our key tenements (EL6183) without any loss of area, which is a direct result of our commitment to fulfilling the entire program of work at Horse Well and across our SA tenement,” Cohiba CEO Andrew Graham said.
Last month, Cohiba announced it has exceeded the $1.5 million minimum expenditure requirement needed to increase its 51 per cent ownership in Olympic Domain to 80 per cent.
Cohiba entered a farm-in agreement with the project’s owner, Olympic Domain (OD), in 2018. The farm-in allowed the company to earn an interest in seven exploration tenements within the Olympic Domain Project.
Unfortunately, today’s tenement renewal announcement has been accompanied by a claim that OD has refused to acknowledge that Cohiba has exceeded the expenditure milestone to secure its rightful 80 per cent stake.
Cohiba believes OD is choosing to stall the next phase of the agreement until results from the Olympic Dam and Pernatty C drilling program are known.
“Whilst it is disappointing that our farm-in agreement has not, as yet, been ratified at the 80 per cent milestone, we are confident that this will be resolved soon, as we have definitively shown that the full expenditure commitment has been exceeded,” Andrew stated.
Cohiba has assured it has provided all the financial evidence needed and plans to take legal action to enforce its rights.
Company shares are up 7.69 per cent and are trading for 1.4 cents at 11:00 am AEDT.