Cordoba Minerals has agreed to sell its remaining 50% stake in the Alacrán Project, a copper-gold-silver development project copper in Colombia, to Veritas Resources in a deal worth up to $128m.
The deal also includes other exploration assets and certain receivables.
The sale will be conducted through the divestment of its wholly-owned Colombian subsidiaries, Minerales Cordoba and Exploradora Cordoba to Veritas Resources.
Veritas is an indirect 100%-owned subsidiary of JCHX Mining Management (JCHX). The latter holds a 19.81% stake in Cordoba.
Currently, Veritas owns the other half of the Alacrán Project. Upon completion of the transaction, Veritas will be owned by a consortium of mining investors, with JCHX Mining maintaining a 55% stake in it.
The transaction is set to provide Cordoba with $88m in immediate cash proceeds upon closing and up to an additional $40m through deferred and contingent payments.
The deferred payment involves $12m payable either upon the start of commercial production at Alacrán or 36 months post-closing. Contingent payments could range between $8m and $28m depending on copper prices at the time of production commencement, though no payment will be made if prices fall below a specified level.
Cordoba president and CEO Sarah Armstrong-Montoya said: “This transaction represents an opportunity to expedite the advancement of the Alacrán Project and will be an excellent outcome for Cordoba shareholders.
“JCHX is a global leader in mine development and operations and brings proven underground mining expertise to the Alacrán Project—one of Colombia’s most advanced copper-gold assets.
“With a strong track record in delivering large-scale international mining projects on budget and ahead of schedule, JCHX is well-positioned to unlock the full potential of the Alacrán deposit alongside its consortium partners.”
Ivanhoe Mines Consulting Services (Beijing) will receive a success fee of 1% on the first $100m obtained from this transaction as part of an advisory agreement.
Cordoba plans to distribute the net proceeds from the initial cash payment to its shareholders after settling liabilities, retaining $5m for corporate needs.
The expected distribution amount is estimated between $65-70m, subject to necessary shareholder and regulatory approvals. The company aims to complete this distribution within six months post-transaction closure.
Upon completion, previous agreements with JCHX will be terminated, including repayment of Cordoba’s bridge loan debt through assignment to Minerales Cordoba.
Closing conditions include approvals from the TSX Venture Exchange and Cordoba shareholders, alongside endorsement of the Environmental Impact Assessment for Alacrán by Colombian authorities.
The shareholder meeting is scheduled for around August 2025, with completion required by the year end.
After finalising the sale, Cordoba will continue as a publicly-listed entity on TSXV, focusing on new business opportunities and managing its Perseverance property. Ivanhoe Electric, a significant existing shareholder, will continue holding a majority share in the company.
