Placement tips $1.5m into Cohiba’s coffers for new economy minerals exploration

Cohiba Minerals has added $1.5 million to its vaults in a placement to advance its copper and zinc projects in Australia, plus the lithium and rare earths prospects in Canada.

The funds raised with support from professional and sophisticated investors will also be used for due diligence on potential new acquisitions and working capital.

Cohiba (ASX:CHK) has wasted no time in making progress at the four highly prospective Canadian lithium properties across a total of 148sqkm it acquired in May.

In late October multiple large pegmatites were identified and mapped, and samples sent for analysis, after specialist consultants in the sector, Dahrouge Consulting, completed reconnaissance work at three of the prospects.

The Cohiba team is now looking forward to assay results from Gathering Lake, Rogers Creek and Ottertail, which are all in known lithium terranes.

Access to the Big Rock prospect was hampered in the pre-winter exploration season due to field conditions and work on this prospect was postponed and resources allocated to the other prospects.

Battery metals focus

The Canadian lithium and rare earth prospects complement Cohiba’s portfolio of critical minerals/battery metals projects, including its Olympic Domain copper and zinc prospects in Australia.

A key target for its exploration efforts is the Horse Well Prospect, only 5km from BHP’s Oak Dam as well as the $1B+ Carrapateena copper mine, and in the same Gawler Craton neighbourhood as Olympic Dam.

It’s in this region that Cohiba has discovered the Horse Well Fault, which is interpreted to have formed during regional (Iron Ore Copper Gold) IOCG deposit formation.

IOCG deposits, including BHP’s nearby Olympic Dam, can yield extremely large and high-grade concentrations of copper, gold and other economic minerals.

Cohiba has also found significant levels of zinc at its Pernatty C project, also in the Gawler Craton region.

How the placement works

The issue price for the placement is 0.12 cents and will be issued in two tranches, on 20 December and 25 January, with the latter subject to shareholder approval at an extraordinary general meeting on 19 January.

Participants in the placement will get one free attaching option for every two new shares, with the options exercisable at 0.3 cents and expiring three years from the issue date. The placement options will also be subject to shareholder approval at the EGM.

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.