Cohiba Minerals (ASX:CHK) reports it will be providing existing eligible shareholders the opportunity to participate in capital raising via a Share Purchase Plan (SPP).
Cohiba’s SPP targeting $2 million is to advance its copper exploration, including at its projects near BHP’s (ASX:BHP) Olympic Dam and OZ Minerals’ (ASX:OZL) $1 billion Carrapateena copper-gold mine and its large-scale Prominent Hill copper-silver-gold mine in South Australia.
The SPP comes less than a month after Cohiba announced it had intersected the same host granite found at the nearby BHP Oak Dam and OZ Minerals’ Carrapateena iron oxide-copper-gold (IOCG) deposits.
It’s also happening as OZ Minerals agrees to BHP’s increased takeover offer of $9.6 billion, ending several months of speculation over the deal.
The company says it is targeting $2 million before the costs with an issue price $0.006 per share, and all applications made through the SPP will also include a 1 for 2 free attaching option, which will be exercisable at $0.010 per option and expiring 2 years from the date of issue. Cohiba will be launching a prospectus for the proposed SPP, which will include the offer for the options.
Subject to applicable law and the company meeting the quotation requirements of ASX, the free-attaching options are proposed to be listed.
Shareholders who were registered holders of Cohiba shares at 7pm AEDT on 18 November 2022, and whose registered address is in Australia or New Zealand will be eligible to participate in the SPP and subscribe for up to $30,000 of shares under the SPP.
Participation in the SPP is optional, and the company says no brokerage or transaction costs will be payable by participating shareholders, and full details of the SPP will be set out in the SPP Prospectus which is expected to be released to ASX and dispatched to eligible shareholders on or about 25 November 2022.
Funds raised under the SPP will be applied to additional exploration activities at Cohiba’s exploration assets located in South Australia, Western Australia, and Queensland
Funds raised under the SPP will be applied to additional exploration activities at Cohiba’s exploration assets located in South Australia, Western Australia, and Queensland and for working capital requirement, and the board may at its discretion, accept oversubscriptions subject to applicable low including compliance with the Listing Rules and ASIC Instrument 2019/547.
Any over subscription through the SPP not accepted by the Board will be scaled back on a pro rata basis, at the Board’s discretion based on the size of a participants shareholding in Cohiba at the Record Date and having regard to control effects.
Key dates for the SPP include an expected open date of 25 November and a closing date of 9 December, announcement of the results of SPP on 14 December, a SPP allotment date of 16 December, and new shares issued under SPP commence trading on ASX on 16 December.
Cohiba Minerals is an ASX-listed company with the primary focus of investing in the resource sector through direct tenement acquisition, joint ventures, farm in arrangements and new project generation.
Its projects include Olympic Domain Copper-Gold Project, the Pyramid Lake Gypsum Project, and the Wee Macgregor Copper Project.
Images: iStock
