JCHX Mining Management will acquire a 50% stake in the CMH Colombia, the JV vehicle for $100m
JCHX to buy 50% stake in the Alacran project from Cordoba Minerals. (Credit: CORDOBA MINERALS CORP)
Cordoba Minerals has reached an agreement with China-based mining construction company JCHX Mining Management to jointly develop its Alacran copper-gold-silver project in Colombia.
In this regard, JCHX Mining Management will acquire a 50% stake in CMH Colombia, the holding company of the project, for $100m.
CMH Colombia will be the joint venture (JV) vehicle for Cordoba Minerals and JCHX Mining Management in the project level partnership.
The Alacran deposit is part of the San Matias project, which is 100% owned by Cordoba Minerals. It is located within the municipality of Puerto Libertador in the south of the Córdoba region.
According to the results of a preliminary feasibility study published in early 2022, the San Matias project is expected to see total initial capital costs of $435m.
The payment by JCHX Mining Management for the stake in the JV will be made in three instalments. The first will see $40m in cash paid upon closing of the deal, which is expected by the end of Q1 2023.
The second instalment of $40m in cash will be paid following the completion of a feasibility study for the Alacran project and the submission of its environmental impact assessment (EIA) to the concerned Colombian government authority.
The final $20m installation will be paid in cash once the EIA has been approved, which must be within two years of the closing date of the transaction.
Cordoba Minerals president and CEO Sarah Armstrong-Montoya said: “It is a huge advantage to have a vastly experienced mining and construction expert join us at the project level to support the development of the Alacran Project, especially given that JCHX brings the added benefit of being very familiar with Cordoba.”