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Ivanhoe Electric Subsidiary Cordoba Minerals Announces Closing of Milestone Agreement with JCHX for Joint Development of the Alacran Copper Project in Colombia
JCHX Acquires 50% of Cordoba's Alacran Project for US$100 Million Cordoba to Repay US$17.3 M...
About this update from Cordoba Minerals Corp.
[{"type":"text","content":"Ivanhoe Electric Subsidiary Cordoba Minerals Announces Closing of Milestone Agreement with JCHX for Joint Development of the Alacran Copper Project in ColombiaJCHX Acquires 50% of Cordoba's Alacran Project for US$100 MillionCordoba to Repay US$17.3 Million in Short-Term Loans to Ivanhoe ElectricPHOENIX, AZ / ACCESSWIRE / May 8, 2023 / Ivanhoe Electric (NYSE American:IE)(TSX:IE) Executive Chairman, Robert Friedland and President and Chief Executive Officer, Taylor Melvin are pleased to announce that Ivanhoe Electric's subsidiary, Cordoba Minerals Corp. (TSXV:CDB)(OTCQB:CDBMF) (\"Cordoba\") and JCHX Mining Management Co., Ltd. (\"JCHX\") have closed their strategic arrangement as previously described in Ivanhoe Electric's December 8, 2022 news release for the joint development of Cordoba's flagship Alacran Project in Colombia. Ivanhoe Electric currently owns 63.3% of Cordoba.With a portion of the cash proceeds from the initial installment paid by JCHX, Cordoba will immediately repay all outstanding short-term loans previously provided by Ivanhoe Electric. The total repayment is approximately US$17.3 million including accrued interest. Ivanhoe Electric intends to use a portion of the loan repayment proceeds to fund the initial exploration drilling program at its Tintic Copper-Gold-Silver Project in Utah, which is expected to commence in May.Cordoba plans to use the balance of cash proceeds from the JCHX acquisition to advance the technical work program associated with the Feasibility Study for the Alacran Copper Project. Additional details are provided in Cordoba's news release.JCHX Payment ScheduleJCHX has acquired a 50% ownership in the Alacran Project for US$100 million payable in three installments. The initial cash installment of US$40 million has been paid by JCHX upon closing.The second installment of US$40 million is payable in cash by JCHX at the earliest date upon completion of a Feasibility Study for the Alacran Project and the submission of the Environmental Impact Assessment (\"EIA\") or, at the latest, by 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,...