Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF). has announced it has received the funds relating to a US$10 million loan from a subsidiary of JCHX Mining Management Co Ltd, as part of a joint agreement between the two companies.
The bridge loan, which was announced on December 8, 2022, was included in the deal between Cordoba and China's JCHX which will see them jointly develop Cordoba’s flagship Alacran project in Colombia.
The deal should be completed around the end of February, 2023, Cordoba said in a statement.
READ: Cordoba Minerals to sell 50% of Alacran project in Colombia for US$100M
The loan is for an 18-month term and bears simple interest at 12% per annum during the first twelve months of the term and simple interest at 14% per annum during the remaining six months of the term, calculated on the basis of a 365-day year.
Proceeds will be used to ensure the company can continue exploration activities along with the advancement of its mineral projects, including the feasibility study technical work program at the Alacran project, the repayment of US$2.5 million of the short-term loans that were previously provided by its majority shareholder Ivanhoe Electric Inc., and for general corporate purposes.
"The participation of JCHX in the project provides an aligned strategic partner as we are steadily advancing the feasibility study work program at Alacran," commented Sarah Armstrong-Montoya, president and CEO of Cordoba.
"We continue to focus on developing Alacran into a project that will generate significant value for all the stakeholders with robust project economics and provide benefits to the local communities and economy in Colombia."
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