Business
Cordoba Minerals Arranges US$2.5 Million Short-Term Financing with Ivanhoe Electric
Continues to Advance Ongoing Feasibility Study Work at the San Matias Copper-Gold-Silver Proje...
About this update from Cordoba Minerals Corp.
[{"type":"text","content":"Cordoba Minerals Arranges US$2.5 Million Short-Term Financing with Ivanhoe ElectricContinues to Advance Ongoing Feasibility Study Work at the San Matias Copper-Gold-Silver Project in ColombiaVancouver, British Columbia--(Newsfile Corp. - November 14, 2022) - 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$2.5 million with its majority shareholder Ivanhoe Electric Inc. (\"IE\"). The short-term loan of US$2.5 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 the earlier of January 31, 2023, and the second business day following the receipt of gross proceeds of not less than US$10 million from any equity or debt financing. US$1 million of the Bridge Loan has been advanced to the Company.The purpose of the Bridge Loan is to ensure the Company can continue exploration activities and the advancement of its mineral projects, including the Feasibility Study technical work program at the 100%-owned San Matias Copper-Gold-Silver Project in Colombia, and for general corporate purposes. \"With the ongoing backing of our majority shareholder, Ivanhoe Electric, we continue to advance exploration activities at our mineral projects. This includes recent successes from the infill drilling program at the San Matias project, where we have intercepted shallow high-grade copper-gold zones and Carbonate Base Metal veins,\" 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...