Cohiba Minerals has made a transformational acquisition of Canadian lithium projects including added rare earths potential, with sophisticated investors backing the strategy to the tune of $1,750,000 in a placement. 

Shares in the company are trading again after the company announced it’s executed a binding agreement to purchase Maple Minerals’ four projects with a combined 148km2 within known lithium terranes hosting major resources of the critical mineral.

The Maple Minerals properties in north-western Ontario add to Cohiba Minerals’ (ASX:CHK) portfolio of copper and zinc assets in the prolific Gawler Craton, broadening the Australian company’s exposure to metals essential to the clean energy transition.

Big potential

The largest of the projects is the Big Rock Lithium Property which comprises nine claims across 3,611 hectares and in the same region as several significant deposits of the metal. These include Green Technology Metals (ASX: GT1) Seymour Project with a Mineral Resource Estimate of 9.9 million tonnes (Mt) at 1.04% lithium oxide (Li2O).

The last major reconnaissance survey at Big Rock was back in 1931 when multiple pegmatites were identified but, at that time, not assessed for lithium and rare earth elements, making the property fertile ground for more exploration.

The Gathering Lake Lithium property (nine claims over 3,897 hectares) is only 25km from the Georgia Lake pegmatite field, which is recognised as having the largest concentration of rare earth element mineralisaton in the Superior geological province of Quebec (which also covers this area of Ontario).

The field hosts several lithium deposits such as Rock Tech Lithium’s Georgia Lake Lithium Project which comprises 10.60Mt Indicated Mineral Resource at a grade of 0.88% Li2O and 4.22 Mt of Inferred Mineral Resource at a grade of 1.0% Li2O.

The Rogers Creek Lithium Property is about 45km east of the Georgia Lake pegmatite field and comprises 10 claims across 4,642 hectares.

With seven claims over 2,690 hectares, the Ottertail Lithium Property is in the same geological setting as the Superb Lake pegmatite field. The Superb Lake field is mainly known for its spodumene bearing lithium and rare earths (niobium/tantalum) mineralisation.

Cohiba’s CEO, Andrew Graham said: “We are delighted to have been able to execute binding agreements for this acquisition and secure these strategic tenements within known lithium and rare earth element terranes.

“North-west Ontario is recognised as a key lithium Province and with highly attractive geological and structural precursors within close proximity to known lithium resources we are confident of yielding exploration success.

“Canada is forecast to be a significant supplier of critical minerals, including lithium, which is evidenced through the recent deal between Green Technology Metals (GT1) and LG Energy Solutions (LGES) which saw LGES invest AUD$20 million in GT1 to become a substantial shareholder and major offtake partner.

“Following an extensive due diligence process we are confident that we have secured an exceptional portfolio of projects and look forward to undertaking some detailed reconnaissance work in the upcoming summer season.”    

What’s next 

The placement’s addition to Cohiba’s coffers means it will be fully funded to start a comprehensive review of historical data and field exploration program in July across all four projects. CHK plans to use local geological consultants with expertise in lithium terranes across Canada with the view to starting reverse circulation drilling over prioritised targets in December.

Shareholder approval will be sought for the consideration securities, comprising 500,000 shares to be issued to Maple Minerals security holders, plus the Tranche 2 Placement shares.

The 62,500,000 Tranche 2 Performance Rights convert to fully paid ordinary shares in CHK subject to the company reporting a JORC compliant drill intercept or channel sample of at least 10 metres and 1% Li2O within 48 months.

The 62,500,000 Tranche 1 Performance Rights will be issued without shareholder approval. They will convert to fully paid ordinary shares in CHK when the company reports at least five rock chip samples taken from the mining claims forming the projects of at least 1% lithium oxide each, in accordance with the JORC code.

CHK will also pay CAD$259,000 (A$291,000) cash to Maple Minerals and a 1.5% net smelter royalty for production off any minerals from the within projects’ boundaries.




This article was developed in collaboration with Cohiba Minerals a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.