Increases Cohiba’s Exploration Areas In SA Alongside Current Olympic Domain Projects
Cohiba Minerals Limited (ASX: CHK) has signed a Farm- In Agreement with Tigers Dominion Group Pty Ltd to earn up to a 51% interest in the Warriner Creek Project in the Gawler Craton. Tigers Dominion Group Pty Ltd (TDG) is a subsidiary of the unlisted public junior explorer, White Tiger Resources Ltd.
The Warriner Creek Project comprises two exploration licences, EL 6324 (Areas A and B) and EL 6533, which cover a combined area of 346 sq. km over strategic IOCG targets in the Gawler Craton.
The Warriner Creek Project is an attractive, low risk option for Cohiba. It aligns perfectly with the Company’s Gawler Craton, IOCG focus and the initial exploration drilling requires only 2 relatively modest depth holes, prior to committing to more material expenditure. The tenements lie within a north-west trending structural corridor and exhibit coincident gravity and magnetic anomalies similar to those found in other IOCG deposits within the highly prospective Olympic Domain, such as the world-class Olympic Dam deposit.
Material Terms of the Farm-in and Joint Venture Agreement
The material terms of the Farm-In and Joint Venture Agreement (Farm-in Agreement) are as follows:
(a) Conditions–TheFarm-in Agreement is conditional upon conditions precedent being satisfied within 6 months after execution of Farm-in Agreement, which include:
– Cohiba entering into any native title agreements required for obtaining access to the Tenements;
– Cohiba obtaining all cultural heritage clearances in accordance with current native title
agreements which have been entered into;
– Cohiba obtaining approval in accordance with the Mining Act for a programme of environmental
protection and rehabilitation to conduct the proposed drilling program on the Tenements; and
– Cohiba entering into any access agreement with all owners of the land within the area of the
(b) Minimum Commitment – comprises an Initial Period (Initial Period) of 12 months whereby Cohiba will assess the prospectivity of the Warriner Creek Project through the expenditure of A$600,000 (minimum expenditure), by drilling a 600m drill hole on the eastern part of EL6324, followed by a 400m drill hole on either the eastern or western part of EL6324 (at Cohiba’s discretion). The target depth in this part of the Gawler Craton is shallower than the Olympic Domain tenements and as such drilling depths will be significantly shorter.
(c) Stage 1 Commitment (Right to 51% interest) – If Cohiba deems that the prospectivity from the Initial Period is worth pursuing it has the right to earn up to 51% of the Warriner Creek Project through total expenditure of A$3,000,000 (Stage 1 Commitment Expenditure), inclusive of expenditure in the Initial Period. Cohiba has the right to provide 30 days’ notice if it decides to withdraw from the Farm- in Agreement following the minimum expenditure being spent.
Cohiba’s subject matter experts have reviewed the information that is available to date and concur that the Warriner Creek Project presents some very interesting targets worthy of thorough investigation. The work that Cohiba has completed on its current projects has generated considerable additional knowledge of IOCG deposits in the Gawler Craton and this knowledge has been a key determinant in entering into the Farm-In Agreement.
“For some time the company has been reviewing a number of possible opportunities in relation to expanding its presence in the Gawler Craton and establishing itself as one of the premier IOCG explorers in the region,” CEO, Andrew Graham, said.
“The Warriner Creek Project presented itself as a strategic opportunity and, following significant investigation, it was determined that this project would greatly complement the company’s existing IOCG portfolio.
“The company remains absolutely committed to its exploration programs at Horse Well, Pernatty C and Lake Torrens and regards the Warriner Creek Project as a great addition to the group. With an ever-increasing awareness of the prospectivity of the region, IOCG target areas are at a premium and as such it was considered timely to enter into this Farm-In Agreement and secure the right to explore.
“The company wishes to thank the White Tiger team for its hard work in helping to establish this strategic partnership and looks forward to forging a strong working relationship”
For further information please visit: https://www.cohibaminerals.com.au/
View other recent mining company news here.