Cordoba Minerals Corp. [TSXV: CDB; OTCQB: CDBMF] has arranged $10 million in Cordoba Minerals bridge financing with affiliates of its joint venture partner, JCHX Mining Management Co. Ltd., to support the advancement of the Alacran copper-gold-silver project in Colombia. The financing will be split into two $5 million loans—one directly to Cordoba and the other to the joint venture entity managing the Alacran project.
Key Terms of the Cordoba Minerals Bridge Financing
The loans, which carry an initial annual interest rate of 10%, will see the rate increase to 12% after six months. Both loans are payable on the earlier of two dates:
- 36 months from the loan agreement date.
- The date of the third installment under JCHX’s $100 million strategic funding commitment, as outlined in the framework agreement signed on December 8, 2022.
If repayment coincides with the third installment, Cordoba can deduct the outstanding loan amounts from the $20 million payment.
Strategic Financing to Ensure Project Progress
The Cordoba Minerals bridge financing will fund detailed engineering design work at Alacran and support general corporate purposes. Cordoba emphasized that this financial backing ensures continuity in project development.
Sarah Armstrong-Montoya, president and CEO of Cordoba, expressed confidence in the partnership with JCHX, stating, “With the support from our joint venture partner, JCHX, the Alacran project continues to move forward with our targeted timeline. With a shared vision, the Alacran project is steadily advancing to be the next copper mine in Colombia in the near future.”
Regulatory Approval and Broader Development
Cordoba’s portion of the bridge financing intended for on-lending to the joint venture requires approval from the TSX Venture Exchange (TSXV). The Alacran project, located in Colombia’s Cordoba department, represents a significant opportunity for the company as it pushes toward production.
Additionally, Cordoba holds a 51% interest in the Perseverance copper project in Arizona, which is in the exploration phase through a separate joint venture and earn-in agreement.
Collaborative Vision for Future Growth
The collaboration between Cordoba Minerals and JCHX Mining underscores a shared commitment to advancing the Alacran project on schedule. With copper demand projected to rise due to its role in the energy transition, the Cordoba Minerals bridge financing aligns with global trends and positions the Alacran project as a key contributor to Colombia’s mining landscape.
