- Cohiba Minerals (CHK) has closed its share purchase plan (SPP) early after receiving almost five times the target amount of subscriptions
- The company had aimed to raise $2 million from the SPP, but received applications for almost $9.4 million in a big vote of confidence from shareholders
- The board has subsequently decided to expand the raise to nearly $5.28 million before costs, and will apply a pro-rata scale-back
- Cohiba will use the funds to drill a number of targets at its Olympic Dam IOCG holdings in SA
- The company will also finalise the mining lease for the Pyramid Lake gypsum project in WA
- Cohiba Minerals is trading grey at 2.3 cents
Cohiba Minerals (CHK) has closed its share purchase plan (SPP) early after receiving almost five times the target amount of subscriptions.
The raise
Cohiba had aimed to raise $2 million from the SPP, but received applications for almost $9.4 million in a big vote of confidence from shareholders.
The board has subsequently decided to expand the raise to $5.279 million before costs, and will apply a pro rata scale-back.
The company will now issue over 310 million shares at 1.7 cents each in the expanded raise.
Cohiba Executive Chairman Mordechai Benedikt says the strong response to the SPP is a vote of confidence in the company’s stratgy.
“On behalf of the board, I would like to thank all shareholders for their significant support through the SPP during these exciting times for the company,” Mordechai said.
The spend
The funds raised will be used to advance the company’s assets across Western Australia and South Australia.
Cohiba will particularly focus on extending the programs of work at Horse Well and Pernatty C, as well as investigating new iron ore-copper-gold (IOCG) targets at Lake Torrens, all part of its Olympic Dam holdings in SA.
The company will also look to finalise the mining lease for the Pyramid Lake gypsum project in WA.
The Executive Chairman says the funds raised will accelerate the exploration of the company’s promising IOCG holdings.
“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 [at Olympic Dam],” Mordechai said.
Cohiba Minerals is trading grey for 2.3 cents at 11:53 am AEDT.