Cordoba Minerals Corp (TSX-V:CDB, OTCQB:CDBMF) announced that it has arranged a short-term, or bridge loan of US$2.5 million with its majority shareholder, Ivanhoe Electric Inc.
The mineral exploration firm said 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 its 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,” Cordoba Minerals CEO Sarah Armstrong-Montoya said in a statement.
READ: Cordoba Minerals posts more 'great' drill results from Alacran deposit at San Matias project in Colombia
“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,” Armstrong-Montoya added.
Cordoba noted the short-term loan is evidenced on a new grid promissory note and bears interest at 12% per annum, compounding only at maturity.
The company added that 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.
Cordoba said it has already received US$1 million of the bridge loan.
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