Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF) announced that it has entered into a strategic arrangement with China’s JCHX Mining Management Co, Ltd for the joint development of Cordoba's flagship Alacran copper project in Colombia.
The mineral exploration company said JCHX, through a wholly-owned subsidiary, will purchase a 50% interest in Alacran for a total consideration of US$100 million, of which US$40 million will be payable in cash upon closing (expected to occur before the end of the first quarter of 2023), with the second installment of US$40 million being payable upon completion of a Cordoba board approved Feasibility Study, and the remaining US$20 million payable once the approval of the Environmental Impact Assessment (EIA) is obtained.
“It is a huge advantage to have a vastly experienced mining and construction expert join us at the project level to support the development of the Alacran Project, especially given that JCHX brings the added benefit of being very familiar with Cordoba,” Cordoba Minerals Sarah Armstrong-Montoya said in a statement.
READ: Cordoba Minerals unveils more drill assays from San Matias project, which underscore its potential
“Furthermore, during my tenure at this company, I have witnessed JCHX's willingness to step up as a partner and espouse the objectives and vision of the company - which unequivocally includes expanding the array of opportunities for the Colombian people and help broaden the already synergistic Sino-Colombian relationship,” Armstrong-Montoya added.
The company noted that 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’s interest being diluted to 40% and Cordoba having a majority 60% stake in the project.
It added that JCHX will advance a bridge loan of US$10 million in cash to Cordoba, which is expected to be funded before the end of December 2022, with the balance owing and accrued interest being applied towards the first installment payment.
As well, Cordoba reported that it continues to steadily advance the Feasibility Study for the Alacran project, and throughout the course of the 2022 in-fill drilling program, it revealed several compelling high-grade copper visual intercepts.
The company also said an updated mineral resource estimate will be prepared after completion of the current 25,000-metre, in-fill drilling program to capture the shallow high-grade zones identified in the core of the resource area and also the multiple Carbonate Base Metal veins intersected in high-grade structures.
Cordoba first entered into a strategic relationship with JCHX on November 18, 2019, with a C$11 million investment by JCHX in Cordoba for a 19.9% equity stake, according to the company.
Cordoba Minerals is focused on copper and gold projects. Its wholly-owned San Matias project includes the Alacran deposit and satellite deposits at Montiel East, Montiel West and Costa Azul and sits in the Department of Cordoba, Colombia.
Cordoba also holds a 51% interest in the Perseverance copper project in Arizona, which it is exploring through a joint venture and earn-in agreement.
Contact Sean at sean@proactiveinvestors.com