Ivanhoe Electric (NYSE American:IE)(TSX:IE) Executive Chairman, Robert Friedland and President and Chief Executive Officer, Taylor Melvin are pleased to announce that Ivanhoe Electric’s subsidiary, Cordoba Minerals Corp. (TSXV:CDB)(OTCQB:CDBMF) (‘Cordoba’) and JCHX Mining Management Co., Ltd. (‘JCHX’) have closed their strategic arrangement as previously described in Ivanhoe Electric’s December 8, 2022 news release for the joint development of Cordoba’s flagship Alacran Project in Colombia. Ivanhoe Electric currently owns 63.3% of Cordoba.
With a portion of the cash proceeds from the initial installment paid by JCHX, Cordoba will immediately repay all outstanding short-term loans previously provided by Ivanhoe Electric. The total repayment is approximately US$17.3 million including accrued interest. Ivanhoe Electric intends to use a portion of the loan repayment proceeds to fund the initial exploration drilling program at its Tintic Copper-Gold-Silver Project in Utah, which is expected to commence in May.
Cordoba plans to use the balance of cash proceeds from the JCHX acquisition to advance the technical work program associated with the Feasibility Study for the Alacran Copper Project. Additional details are provided in Cordoba’s news release.
JCHX Payment Schedule
JCHX has acquired a 50% ownership in the Alacran Project for US$100 million payable in three installments. The initial cash installment of US$40 million has been paid by JCHX upon closing.
The second installment of US$40 million is payable in cash by JCHX at the earliest date upon completion of a Feasibility Study for the Alacran Project and the submission of the Environmental Impact Assessment (‘EIA’) or, at the latest, by the second anniversary of the closing of the transaction.
The third and final installment of US$20 million is payable in cash by JCHX once the approval of the EIA is obtained, which must be within two years of the transaction’s closing date. Should the EIA not be approved by the second anniversary of the closing date, JCHX will have the option to elect not to complete this third and final installment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority of 60% ownership of the Alacran Project.
About Ivanhoe Electric
Ivanhoe Electric is an American technology and mineral exploration company that is re-inventing mining for the electrification of everything by combining advanced mineral exploration technologies, renewable energy storage solutions and electric metals projects predominantly located in the United States. Ivanhoe Electric uses its Typhoon transmitter, an accurate and powerful geophysical survey system, together with advanced data analytics provided by its subsidiary, Computational Geosciences Inc., to accelerate and de-risk the mineral exploration process as well as to potentially discover deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. Through its controlling interest in VRB Energy, Ivanhoe Electric also develops and manufactures advanced grid-scale vanadium redox battery storage systems. Finally, through advancing its portfolio of electric metals projects located primarily in the United States, headlined by the Santa Cruz Copper Project in Arizona and the Tintic Copper-Gold Project in Utah, as well as projects in Montana, Nevada, Oregon and North Carolina, Ivanhoe Electric is also well positioned to support American supply chain independence by delivering the critical metals necessary for electrification of the economy.
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