Cordoba Minerals (TSXV: CDB) (OTC: CDBMF) announced on Thursday that it has entered a strategic arrangement with JCHX Mining Management to jointly develop the company's flagship Alacran copper-gold-silver project in Colombia. JCHX is a leading mining construction companies in China, and currently a shareholder of Cordoba.
As part of the arrangement, JCHX will purchase a 50% ownership interest in the Alacran project for total consideration of US$100 million. The payment will be made in three installments: US$40 million cash upon closing, expected by the end of Q1 2023; US$40 million cash payable upon completion of a feasibility study for Alacran and submission of the project's environmental impact assessment (EIA); and US$20 million cash payable once approval of the EIA is obtained, which must be within two years.
JCHX will advance a bridge loan of US$10 million in cash to Cordoba, which is expected to be funded prior to the end of December 2022, following the signing of the milestone agreements.
Cordoba first publicized an initial strategic relationship with JCHX in November 2019, when the latter made a C$11 million investment for a 19.9% stake in the company. The new arrangement would see the companies become joint venture partners on the Alacran project, which Cordoba acquired in June 2020.
"With JCHX's continual unwavering confidence in Cordoba, it comes with no surprise when the time came for the Alacran project to find a partner, we conclusively arrived at JCHX," stated Cordoba president and CEO Sarah Armstrong-Montoya in a news release.
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