Cordoba Minerals Corp V.CDB

Closed the strategic financing

[JuniorMiner2014]

Cordoba Minerals Announces Milestone Closing of the Strategic
Arrangement with JCHX to Jointly-Develop the Alacran Project
in Colombia

VANCOUVER, BRITISH COLUMBIA – Sarah Armstrong-Montoya, President and Chief Executive Officer of Cordoba Minerals Corp. (TSXV:CDB; OTCQB:CDBMF) (“Cordoba” or the “Company”), is pleased to announce that Cordoba and JCHX Mining Management Co., Ltd. (“JCHX”) have closed the previously announced US$100 million strategic arrangement (the “Transaction”) 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,” commented Ms. Sarah Armstrong-Montoya, President and CEO of Cordoba.
At closing, JCHX has acquired a 50% ownership interest in CMH Colombia S.A.S. (“CMH”), a subsidiary company that owns 100% of the Alacran Project, for a total of US$100 million in three installments. The initial installment of US$40 million has been paid by JCHX upon closing of the Transaction.
The second installment of US$40 million is payable in cash by JCHX at the earliest date upon completion of a Cordoba board approved Feasibility Study (“FS”) for the Alacran Project, and the submission of the Environmental Impact Assessment (“EIA”) to the relevant Colombian Government authority, but in no event shall such second installment be paid later than 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, JCHX will have the option to elect not to complete this third and final installment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority 60% shareholding in CMH.
The proceeds of the Transaction will be used to ensure the Company can continue the advancement of the Alacran Project, including the FS 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.
Today, the senior management of Cordoba and JCHX held an official signing ceremony for the closing of this milestone Transaction, followed by imperative time for the leadership teams from both organizations to meet and inaugurate this next phase of the joint-development of the Alacran Project.
“Chairman Wang, myself, and the entire JCHX team are very much 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,” commented Dr. Huaisheng Peng, President of JCHX Group.
Ms. Sarah Armstrong-Montoya, President and CEO of Cordoba, further comments: “My team and I are extremely excited to be able to celebrate this closing in person with the JCHX team, marking our mutual substantial efforts on harmonizing our work with the local communities and Colombian government, over an unprecedented global pandemic, to reach this next stage of advancement for the Alacran Project. I truly believe that we have founded an immensely complementary partnership between the Colombian people, Cordoba, and JCHX.”
Further information regarding the Transaction is available in our Management Information Circular dated January 3, 2023 which is filed on SEDAR at www.sedar.com