Cordoba Minerals Corp. Achieves Milestone with JCHX in Alacrán Project Investment
- Cordoba Minerals secures a US$100 million investment from JCHX, solidifying a 50% stake in the Alacrán Project.
- The company uses US$10 million from the investment to repay project-related bridge loans, showcasing financial prudence.
- Cordoba plans to sell its remaining 50% interest in the Alacrán Project to Veritas Resources AG by May 2025.
Cordoba Minerals Marks Key Milestone in Alacrán Project Development
Cordoba Minerals Corp. achieves a pivotal milestone in its collaboration with JCHX Mining Management Co., Ltd. concerning the Alacrán Project in Colombia. JCHX finalizes its US$100 million investment commitment by making the final US$20 million payment, as stipulated in their Initial Framework Agreement signed on December 8, 2022. This transaction solidifies JCHX's 50% stake in CMH Colombia S.A.S. (CMH), the entity that holds the rights to the Alacrán Project. The investment reinforces both companies' commitment to advancing the project, which has significant potential in the mining sector.
The funding from JCHX is critical for Cordoba Minerals as it navigates the financial landscape associated with large-scale mining operations. The completion of this last installment follows two previous payments of US$40 million each made on May 8, 2023, and January 4, 2024. Cordoba utilizes approximately US$10 million from this recent payment to repay bridge loans connected to the project, indicating prudent financial management amidst ongoing development. Sarah Armstrong-Montoya, Cordoba's President and CEO, highlights the completion of this payment as a strong endorsement of the Alacrán Project, suggesting that investor confidence remains robust.
In a strategic move, Cordoba has also announced its intention to sell its remaining 50% interest in the Alacrán Project, along with other assets, to Veritas Resources AG, a subsidiary of JCHX. This transaction, set to take place on May 8, 2025, is pending approval from the TSX Venture Exchange and other customary closing conditions. The successful sale would allow Veritas to gain full control of the Alacrán Project, potentially streamlining operations and enhancing the project's viability in the competitive mining industry.
Cordoba Minerals continues to explore opportunities beyond the Alacrán Project, particularly focusing on its 51% interest in the San Matias Project. As the company positions itself for future growth, the successful partnership with JCHX signifies a strong foundation for its ongoing and upcoming mining ventures. Cordoba's strategic decisions and investor relationships remain crucial as it navigates the complexities of the mining sector in Colombia.