SYDNEY, AUSTRALIA: Cohiba Minerals Limited (ASX: CHK | OTCQB: CHKMF), a diversified mineral exploration company, has announced that it has executed a binding agreement to acquire Maple Minerals 2 Pty Ltd (Maple Minerals), which holds the rights to acquire four lithium and rare earth element (REE) properties in Ontario, Canada.
The Maple Minerals project portfolio consists of the Big Rock, Rogers Creek, Ottertail, and Gathering Lake lithium properties, which collectively cover 148km-square within known lithium terranes. The properties are located in north-west Ontario, a region that hosts several advanced lithium projects, such as the Georgia Lake project of Rock Tech Lithium Inc. and the Mavis Lake project of International Lithium Corp.
The acquisition is subject to CHK shareholder approval, which is required for the issue of 1.5 billion fully paid ordinary shares and 750 million performance rights to the vendors of Maple Minerals (Consideration Shares and Consideration Performance Rights). The Consideration Performance Rights will vest upon achieving certain exploration milestones on the properties.
As a condition of the acquisition, Cohiba has also received firm and irrevocable commitments from professional and sophisticated investors for a capital raising of $1.75 million (before costs) (Placement), to be conducted in two tranches. The first tranche of $1 million will be issued without shareholder approval, while the second tranche of $750,000 will be subject to shareholder approval.
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 GTI 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.”
According to Cohiba, the acquisition of Maple Minerals is part of its strategy to diversify its asset base and leverage its expertise in exploration and development of critical minerals. Cohiba also has interests in copper-gold projects in South Australia, including the Horse Well project near BHP’s Olympic Dam mine and the Pernatty project near OZ Minerals’ Carrapateena mine.
Wellnex Life to buy Pain Away for $22 million in cash
Osmond Resources to acquires Salt Wells Lithium-Borate Project in Nevada