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- Cohiba Minerals (CHK) is set to increase its 51 per cent ownership of the Olympic Domain tenements to 80 per cent
- Cohiba informed its farm-in partner, Olympic Domain, it has exceeded the $1.5 million expenditure requirement needed to secure an 80 per cent interest
- The parties entered a farm-in agreement in March 2018 which would allow Cohiba to earn an interest in Olympic’s seven exploration tenements in South Australia
- These tenements cover an area of just under 1100 square kilometres and have significant iron oxide copper-gold potential
- Cohiba will now wait for confirmation from Olympic Domain before lodging the official documents with the Department for Energy and Mining SA
- Cohiba shares are up 11.8 per cent in early trade, priced at 1.9 cents each
Cohiba Minerals (CHK) is set to increase its 51 per cent ownership of the Olympic Domain tenements to 80 per cent.
This follows the company informing its farm-in partner, Olympic Domain, that it has exceeded the $1.5 million expenditure requirement to secure the 80 per cent ownership in the tenements.
Cohiba and Olympic Domain first entered a farm-in agreement in March 2018 which would allow Cohiba to earn an interest in Olympic’s seven exploration tenements in South Australia.
Collectively, the tenements cover an area of 1094 square kilometres within the Stuart Shelf which hosts major iron oxide copper-gold (IOCG) deposits.
In the first year, Cohiba had to spend at least $500,000 on exploration to earn a 30 per cent stake in the tenements.
In May of this year, the company satisfied its stage two expenditure obligation of $1 million to earn the 51 per cent interest it currently holds. In fact, it exceeded the required amount by $80,000.
Cohiba will now wait for its farm-in partner’s formal acknowledgement before lodging the official documentation with the Department for Energy and Mining SA.
“We have worked very hard to achieve this significant milestone and ensured that funds have been utilised in the most effective manner possible,” Cohiba CEO Andrew Graham said.
“The exploration program on the Olympic Domain tenements is progressing well with an imminent move to the second drill hole at Horse Well,” Andrew added.
The Horse Well tenement is one of the seven tenements under the farm-in agreement.
Cohiba shares are up 11.8 per cent in early trade, priced at 1.9 cents each at 10:35 am AEST.
