Cordoba and JCHX sign agreement to jointly develop Alacran project

Key terms of the milestone agreements signed on 7 December 2022:

• JCHX, through a wholly owned subsidiary, will purchase a 50% ownership interest in CMH Colombia S.A.S. (CMH), a company existing under the laws of Colombia, for aggregate consideration of US$100 million.
• CMH will own 100% of the Alacran project and will be the joint venture vehicle for Cordoba and JCHX in this strategic project level partnership.

JCHX will satisfy the purchase price of US$100 million as follows:

• At the closing of the transaction, which is expected to occur before the end of 1Q23, US$40 million will be payable in cash.
• A second instalment of US$40 million is payable in cash upon completion of a feasibility study of the Alacran project and the submission of the environmental impact assessment (EIA) to the relevant Colombian Government authority.
• A third and final instalment of US$20 million is payable in cash 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 final instalment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority 60% shareholding in CMH.
• JCHX will advance a bridge loan of US$10 million in cash to Cordoba, which is expected to be funded prior to the end of December 2022, following the signing of these milestone agreements and conditional upon JCHX shareholder approval. Upon closing of the transaction, the entire balance owing under the bridge loan and accrued interest will be applied towards the first instalment payment as a payment in kind.

Read the article online at: https://www.globalminingreview.com/mining/09122022/cordoba-and-jchx-sign-agreement-to-jointly-develop-alacran-project/