Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF) CEO Sarah Armstrong-Montoya said that Cordoba and JCHX Mining Management Company Ltd have closed the previously announced US$100 million strategic arrangement for the joint-development of the company's flagship Alacran project, in Colombia.
"On behalf of Cordoba, I would like to once again welcome JCHX to our continued and deepened partnership, as we jointly develop the imminent largest copper project in Colombia," said Armstrong-Montoya.
At closing, JCHX acquired a 50% ownership interest in Cordoba’s subsidiary CMH Colombia SAS (CMH), which 100% of the Alacran project for US$100 million in three installments. The initial installment of US$40 million has been paid by JCHX upon closing of the transaction, said Cordoba.
The second installment of US$40 million is payable in cash by JCHX on completion of a Cordoba board approved feasibility study for the Alacran project, and the submission of the Environmental Impact Assessment (EIA) to the relevant Colombian government authority.
Still, Cordoba noted that in “no event” shall the second installment be paid later than the second anniversary of the closing of the deal.
The third and final installment of US$20 million is payable in cash by JCHX once the EIA approval is greenlit, which must be within two years of the transaction's closing date. If the EIA is not approved by then, JCHX will have the option to choose not to complete the final installment, which will result in JCHX being diluted to 40% and Cordoba increasing its stake to a majority 60% shareholding in CMH.
Cordoba said the funds will ensure it can continue advancing the Alacran project, including the feasibility study technical work program, in-fill drilling campaign, and repayment of the short-term loans that were previously provided by its majority shareholder Ivanhoe Electric Inc.
The senior management teams from Cordoba and JCHX held a signing ceremony to mark the closing of the deal and inaugurated the next phase of the joint development of the Alacran project.
"Chairman Wang, myself and the entire JCHX team are looking forward to warmly receiving the Cordoba team for a much needed celebration of not just the closing of this transaction, but also the resilient partnership we have successfully and jointly built," said Dr Huaisheng Peng, president of the JCHX Group.
“I truly believe that we have founded an immensely complementary partnership between the Colombian people, Cordoba, and JCHX," added Cordoba boss Armstrong-Montoya in her closing remarks.
Cordoba also holds a 51% interest in the Perseverance Copper project in the US state of Arizona, which it is exploring through a joint venture and earn-in agreement.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive