Cordoba to divest 50% interest in Alacrán project in Colombia for $128m

Ivanhoe Electric subsidiary Cordoba Minerals has entered a definitive model statement with Veritas Resources to merchantability its 50% involvement successful the Alacrán copper-gold task successful Colombia, on with further Colombian exploration assets, successful a $128m deal.

The transaction volition impact the divestment of Cordoba’s wholly owned Colombian subsidiaries, Minerales Cordoba and Exploradora Cordoba, to Veritas Resources, which holds the remaining 50% involvement successful the project.

Veritas Resources, a subsidiary of JCHX Mining Management, volition supply Cordoba with contiguous currency proceeds of $88m.

Cordoba volition besides beryllium eligible for up to an further $40m successful imaginable deferred and contingent payments.

A occurrence interest volition besides beryllium paid to Ivanhoe Mines Consulting Services for its advisory relation successful the transaction.

Cordoba plans to administer the nett proceeds from the merchantability to its shareholders, retaining $5m for firm purposes. The organisation is expected to beryllium betwixt $65m and $70m, taxable to regulatory approvals and completion of the transaction wrong the agreed clip frame.

The transaction volition effect successful the termination of erstwhile agreements with JCHX and the repayment of outstanding span indebtedness debt.

The closing of the woody is contingent connected respective approvals, including those from Cordoba shareholders, the TSX Venture Exchange (TSXV) and Colombia's biology authority.

Post-transaction, Cordoba volition stay a publically listed institution connected the TSXV, focusing connected its Perseverance spot and seeking caller concern improvement opportunities. Ivanhoe Electric volition proceed to beryllium a important shareholder.

The transaction is classified arsenic a related enactment transaction, fixed JCHX's important shareholding successful Cordoba.

A peculiar committee of autarkic directors was formed to oversee the transaction process, with Haywood Securities providing a fairness sentiment and fiscal advisory services.

The peculiar committee and the committee of directors person unanimously approved the transaction, deeming it successful the champion interests of Cordoba and just to its shareholders, excluding JCHX and its affiliates.

Cordoba Minerals president and CEO Sarah Armstrong-Montoya said: “This transaction represents an accidental to expedite the advancement of the Alacrán Project and volition beryllium an fantabulous result for Cordoba shareholders.

“JCHX is simply a planetary person successful excavation improvement and operations and brings proven underground mining expertise to the Alacrán Project – 1 of Colombia’s astir precocious copper-gold assets. With a beardown way grounds successful delivering large-scale planetary mining projects connected fund and up of schedule, JCHX is well-positioned to unlock the afloat imaginable of the Alacrán deposit alongside its consortium partners.”