Business
Cordoba Minerals Arranges US$2 Million Short-Term Financing with Ivanhoe Electric
Vancouver, British Columbia--(Newsfile Corp. - December 15, 2022) - Sarah Armstrong-Montoya, Pres...
About this update from Cordoba Minerals Corp.
[{"type":"text","content":"Cordoba Minerals Arranges US$2 Million Short-Term Financing with Ivanhoe ElectricVancouver, British Columbia--(Newsfile Corp. - December 15, 2022) - Sarah Armstrong-Montoya, President and Chief Executive Officer of Cordoba Minerals Corp. (TSXV: CDB) (OTCQB: CDBMF) (otherwise \"Cordoba\" or the \"Company\"), announces that the Company has arranged a short-term loan of US$2 million with its majority shareholder Ivanhoe Electric Inc. (\"IE\"). The short-term loan of US$2 million (the \"Bridge Loan\") is evidenced on a new grid promissory note and bears interest at 12% per annum, compounding only at maturity. The interest rate will increase to 14% per annum if Cordoba does not repay the amount owing upon the maturity date, which is March 15, 2023. The purpose of the Bridge Loan is to ensure sufficient cash is available to the Company to be certain it can sustain its general working capital requirements until the receipt of the US$10 million short-term loan from JCHX Mining Management Co., Ltd. (\"JCHX\"), which is expected to occur before the end of December 2022. This US$10 million short-term loan is part of the initial US$40 million installment from the Company's joint venture arrangement for the development of the Alacran Project with JCHX (refer to Cordoba's news release dated December 8, 2022).\"With the continuous support of our majority shareholder, Ivanhoe Electric, and the recently announced partnership with JCHX, we are steadily advancing the Alacran Project towards the next stage,\" commented Ms. Sarah Armstrong-Montoya, President and CEO of Cordoba. The Bridge Loan constitutes a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") as IE is a related party of Cordoba given its greater than 10% beneficial shareholding. Pursuant to Section 5.7(1)(f) of MI 61-101, the Company is exempt from obtaining minority approval of the Company's shareholders in respect of the Bridge Loan because it was determined that the Bridge Loan is on reasonable commercial terms that are not less advantageous to the Company than if the Bridge Loan was obtained from a person dealing at arm's length with the Company and because the Bridge Loan is not convertible into, or repayable in, equity or voting securities of the Company or a subsidiary of the Compa...