Cordoba sells remaining half of Alacrán copper project, stock halted

me-metals: Cordoba Minerals (TSXV: CDB) has agreed to sell its remaining 50% interest in the Alacrán copper project to a consortium of investors including China’s JCHX for cash consideration of up to $128 million.

Cordoba sells remaining half of Alacrán copper project, stock halted

According to me-metals cited from mining.com, The Alacrán project is positioned to be Colombia’s largest copper mine, and has already been designated as a “Project of National Interest” by the government. The project is permitted and in the advanced development stage.

In late 2022, JCHX partnered with Cordoba on the project by acquiring a 50% stake for $100 million. At the time, the Chinese firm was already a strategic shareholder of Cordoba, and currently owns 19.81% of its stock.

On Thursday, Cordoba announced it will now sell the other 50% of Alacrán to JCHX and a group of investors for an initial cash payment of $88 million, plus a deferred payment of $12 million once the project reaches commercial production (or three years after closing, whichever is earlier).

Cordoba could issue either $8 million or $28 million in contingent payments depending on the copper market at time of commercial production.

Cordoba Minerals surged to a new 52-week high of C$0.92 apiece on Wednesday prior to the announcement, before its trading was halted. The company has a market capitalization of C$83.8 million as of midday Thursday.

“This transaction represents an opportunity to expedite the advancement of the Alacrán project,” Cordoba CEO Sarah Armstrong-Montoya said in a news release.

“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,” she said.

Once built, the open pit mine is expected to produce nearly 800 million lb. of the red-colored metal, plus economic amounts of gold and silver, over 14 years, according to a feasibility study from 2023. The project’s after-tax net present value was estimated at $360 million (at an 8% discount), with an internal rate of return of 23.8% and a payback period of three years. Its initial capital cost was pegged at $420 million.

The Alacrán deposit is part of Cordoba’s larger San Matias exploration property located in the municipality of Puerto Libertador, which will also be sold to the consortium.

Following the sale, Cordoba’s sole asset will be the Perseverance copper project in Arizona, which it is exploring under a joint venture with Bell Copper. Ivanhoe Electric (NYSE American: IE) (TSX: IE), which is developing the Santa Cruz copper project in Arizona, is a majority shareholder in Cordoba (63%).

source: mining.com

copper project China Colombia CEO