Cohiba closes capital raising early, nearly 5x oversubscribed
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Special Report: Cohiba was only aiming for $2m in its recent share purchase plan but investor demand was so strong it received applications for nearly 5x that amount.
Cohiba Minerals (ASX:CHK) has closed its share purchase plan early due to extremely strong demand that resulted in applications totalling $9.4m.
The company has decided to increase the size of the SPP and accept oversubscriptions to raise $5.3m.
The cash will be used to expand Cohiba’s exploration push at the Horse Well and Pernatty C projects in South Australia, as well as investigating new iron oxide-copper-gold (IOCG) targets at Lake Torrens, also in South Australia.
“On behalf of the board, I would like to thank all shareholders for their significant support through the share purchase plan during these exciting times for the company,” executive chairman Mordechai Benedikt said.
Cohiba has uncovered multiple targets in close proximity to world class deposits like BHP’s (ASX:BHP) giant Olympic Dam and OZ Minerals’ (ASX:OZL) $1bn Carrapateena copper-gold mine, which began production in December last year.
“Management has identified a number of drill ready targets which we would like to follow up into the future following receipt of the upcoming assay results from the current drilling program,” Benedikt said.
Cohiba is drilling four deep holes at the Horse Well prospect, where previous comprehensive geophysical analysis indicated the presence of a major “feeder” system believed to be associated with IOCG mineralisation that is comparable in size to the Olympic Dam feeder system.
IOCG systems can be tremendously large, high grade, and simple-to-process concentrations of copper, gold and other economic minerals.
Drilling is also backing that up, with one hole showing strong alignment to an IOCG environment and visual evidence of sulphides.
Pernatty C, meanwhile, has already shown strong similarities to the Mt Gunson copper-cobalt-silver resource located 10km southwest.
Mt Gunson recorded historic production of 150,000 tonnes of copper and 2.1 million oz of silver at an average copper grade of 2.44 per cent.
Pernatty C has also shown strong similarities to the Zambian Copperbelt, which hosts massive mines like Chambishi (124 million tonnes at 2.6 per cent copper).
The cash raised from the SPP will also go towards finalising the mining lease for the Pyramid Lake gypsum project in Western Australia.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.