Business
Cordoba Minerals Announces US$1.3 Million Private Placement with HPX
Toronto, Ontario--(Newsfile Corp. - July 25, 2018) - Cordoba Minerals Corp. (TSXV: CDB )...
About this update from Cordoba Minerals Corp.
[{"type":"text","content":"Cordoba Minerals Announces US$1.3 Million Private Placement with HPXProceeds for Exploration of High-Priority Targets at San MatiasToronto, Ontario--(Newsfile Corp. - July 25, 2018) - Cordoba Minerals Corp. (TSXV: CDB) (OTCQX: CDBMF) (\"Cordoba\" or the \"Company\") announced today that it is raising US$1.3 million through a non-brokered private placement (the \"Placement\") of common shares with the Company's majority shareholder, High Power Exploration Inc. (\"HPX\"). Proceeds from the Placement will be used by Cordoba to advance the exploration of high-priority regional targets at the Company's 100%-owned San Matias Copper-Gold Project in the Department of Cordoba, Colombia, which includes the advanced-stage Alacran Deposit, and for general working capital purposes.Cordoba proposes to issue HPX 16,289,619 common shares in Cordoba through the Placement at a deemed price of C$0.105 per common share. Cordoba also proposes to convert the principal and interest owed to HPX under the short-term loans that it previously advanced to the Company (the \"Loans\") into common shares (the \"Debt Conversion\") at a price per share that is equal to the issue price under the Placement. Accordingly, HPX is expected to receive an additional 21,941,567 common shares in connection with converting the US$1.75 million owed under the Loans.Cordoba also proposes to issue 5,336,103 Shares to HPX at the same price per share as under the Placement to satisfy a deferred payment owed to HPX totalling US$425,850 relating to Cordoba's acquisition of the Alacran Project (the \"Omni Settlement\"). Completion of the Placement, the Debt Conversion and the Omni Settlement are subject to TSX Venture Exchange approval and closing is expected to occur on, or about, August 3, 2018. Upon completion of the transactions, HPX is expected to own 180,984,035 common shares in Cordoba, representing a 72.3% interest.Each of the Placement, the Debt Conversion and the Omni Settlement is a \"related party transaction\" under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") because HPX is a related party to Cordoba as the majority shareholder. Pursuant to Section 5.5(a) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a formal valuation and approval of the Company's minority shareholders due ...