- Junior miner Cohiba Minerals (CHK) is tapping investors for a neat $2 million through a share purchase plan slated to open this week
- Under the purchase plan, shareholders can subscribe for up to $30,000 worth of new shares at 1.7 cents each
- This represents a discount of 5.5 per cent to Cohiba’s last closing price
- The company says it will use the new funds to take on extra exploration work across its Australian mining assets
- Specifically, the money will help fund exploration work at Cohiba’s Olympic Domain project in South Australia and a mining lease at its Pyramid Lake project in Western Australia
- Shares in Cohiba are trading grey this afternoon and currently worth 1.8 cents each
Cohiba Minerals (CHK) is tapping investors for a neat $2 million through a share purchase plan slated to open this week.
Eligible shareholders will be able to subscribe for up to $30,000 worth of new shares at 1.7 cents each under the purchase plan — a discount of around 5.5 per cent to Cohiba’s last closing price of 1.8 cents.
Shareholders topping up under the offer won’t cop any brokerage fees of transaction costs for their purchase.
Why the raise?
Cohiba said it will use the cash boost to take on some extra exploration work across its Australian mining assets.
Specifically, the company will extend its work programs at the Horse Well and Pernatty C prospects, which are part of the larger Olympic Domain copper-gold project in South Australia.
Some of the funding will go towards investigating some new iron-oxide-copper-gold (IOCG) targets at Lake Torrens, also part of Olympic Domain.
On top of this, Cohiba said it will use the money to finalise the mining lease for its Pyramid Lake gypsum project, which is in Western Australia.
Cohiba said under the terms of the purchase plan, its board can accept oversubscription to the $2 million sought. Any oversubscriptions not accepted will be scaled back on a pro-rata basis.
Shares in Cohiba are trading grey this afternoon, worth 1.8 cents each at 1:45 pm AEDT. The company has an $18.64 million market cap.