A subsidiary of Robert Friedland-backed Ivanhoe Electric (TSX:IE) will bank US$100 million ($156.3 million) from the sale of the remaining 50% stake in the Alacrán Copper Project in Colombia.
Ivanhoe Electric’s 63% owned subsidiary Cordoba Minerals (TSX-V:CDB) has signed a definitive framework agreement with a consortium of investors including JCHX Mining Management, a 19.8% shareholder of Cordoba.
JCHX acquired its initial 50% interest in the Alacrán Copper Project in May 2023 for US$100 million.
For the sale of the remaining 50%, Cordoba will receive US$88 million in cash on closing of the transaction and a deferred payment of US$12 million on the earlier of commercial production or 36 months from closing.
There is also the potential for a further contingent cash payment of up to US$28 million based on the prevailing copper price if the project is taken through to commercial production.
The US$100 million purchase price equates to US$1.10 per Cordoba share, with between about US$65 million and US$70 million to be returned to shareholders after factoring in various costs, including a US$5 million working capital reserve.
Ivanhoe Electric anticipates it will receive over US$40 million from the initial proceeds.
Ivanhoe Electric CEO Taylor Melvin says the deal marks an important milestone for the company towards the monetisation of its long-term investment in the Alacrán Copper Project.
“Proceeds received from the transaction will be used to support our US-based projects and other exploration initiatives,” he says.
The deadline for completion of the transaction is 31 December 2025, with the deal subject to approvals by the TSX Venture Exchange, Cordoba shareholders, and approval of the Environmental Impact Assessment for the Alacrán Copper Project.
Cordoba is a copper-gold developer with the right to earn up to an 80% stake in the Perseverance Copper Project in Arizona, US by spending C$14.2 million ($15.9 million) by April 2026. Cordoba already owns 51% of the Perseverance Copper Project.
Write to Angela East at Mining.com.au
Images: Ivanhoe Electric
