Cohiba Minerals Limited [ASX:CHK] has seen a major spike in its share price over the last week.
At time of writing, Cohiba’s shares are up 280% from this time last week, trading at 1.9 cents. This is the highest the stock has traded in over 18 months.
Why have Cohiba shares spiked?
As we wrote last week, the surge came after the company announced its plans to accelerate the exploration of it Olympian Domain project, following the news that BHP found a huge copper deposit next to Cohiba’s tenements.
The two projects are right next to one another:
Source: Cohiba Minerals
As per smallcaps.com.au:
‘BHP’s discovery, … included a 425.7m intersection grading 3.04% copper 0.59 grams per tonne gold, 346 parts per million uranium and 6.03g/t silver, was in a tenement adjacent to Cohiba’s in South Australia’s Olympic iron-oxide, copper, gold (IOCG) province.’
What’s the future like for Cohiba Minerals shares?
While long-term shareholders were rewarded, some might consider it a little too late to join the party.
As it stands, BHP’s discovery is only 2km from the company’s Olympic Domain Project and the company needs to seek out additional funding in order to proceed with drilling.
To further this agenda, Cohiba has recently announced that it has,
‘in the past few weeks … been in preliminary discussions with various parties willing to discuss collaboration on the Horse Well Project … Cohiba and its joint venture partner [are] seeking to finalise permits to enable us to commence a drilling program as soon as practical.’
Investors will be watching future announcements very closely.
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