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Cordoba Minerals Announces Milestone Closing of the Strategic Arrangement with JCHX to Jointly-Develop the Alacran Project in Colombia
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2023) - Sarah Armstrong-Montoya, President ...
About this update from Cordoba Minerals Corp.
[{"type":"text","content":"Cordoba Minerals Announces Milestone Closing of the Strategic Arrangement with JCHX to Jointly-Develop the Alacran Project in ColombiaVancouver, British Columbia--(Newsfile Corp. - May 8, 2023) - Sarah Armstrong-Montoya, President and Chief Executive Officer of Cordoba Minerals Corp. (TSXV: CDB) (OTCQB: CDBMF) (\"Cordoba\" or the \"Company\"), is pleased to announce that Cordoba and JCHX Mining Management Co., Ltd. (\"JCHX\") have closed the previously announced US$100 million strategic arrangement (the \"Transaction\") for the joint-development of the Company's flagship Alacran Project in Colombia. \"On behalf of Cordoba, I would like to once again welcome JCHX to our continued and deepened partnership, as we jointly develop the imminent largest copper project in Colombia,\" commented Ms. Sarah Armstrong-Montoya, President and CEO of Cordoba.At closing, JCHX has acquired a 50% ownership interest in CMH Colombia S.A.S. (\"CMH\"), a subsidiary company that owns 100% of the Alacran Project, for a total of US$100 million in three installments. The initial installment of US$40 million has been paid by JCHX upon closing of the Transaction. The second installment of US$40 million is payable in cash by JCHX at the earliest date upon completion of a Cordoba board approved Feasibility Study (\"FS\") for the Alacran Project, and the submission of the Environmental Impact Assessment (\"EIA\") to the relevant Colombian Government authority, but in no event shall such second installment be paid later than the second anniversary of the closing of the Transaction.The third and final installment of US$20 million is payable in cash by JCHX once the approval of the EIA is obtained, which must be within two years of the Transaction's closing date. Should the EIA not be approved by the second anniversary of the closing date, JCHX will have the option to elect not to complete this third and final installment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority 60% shareholding in CMH.The proceeds of the Transaction will be used to ensure the Company can continue the advancement of the Alacran Project, including the FS technical work program, in-fill drilling campaign, and repayment of the short-term loans that were previously provided by its majority shareholder Ivanhoe Electric Inc.Today, the senior management of Cor...