The Canadian Minera Cordoba Minerals signed an agreement for sell the 50 percent participation in the Alacrán project, One of the most advanced copper and gold assets in Colombia.
This operation also includes all the other exploration assets that the company has in the country and will be specified through the Disinversion of its Colombian subsidiaries Córdoba and Córdoba Explorer.
The sale of the scorpion (which is part of the San Matías project) and of these subsidiaries It will mark the departure of Cordoba Minerals of Colombia, After more than 10 years, betting on the development of this project.
Photo:stock
The buyer will be the company Veritas Resources AG, which currently has the remaining 50 percent of the Alacrán project. Currently, Veritas is an indirect subsidiary of absolute property of Jchx Mining Management, strategic and shareholder partner of 19.81 percent of Cordoba Minerals.
At the close of this operation, Veritas Resources AG It will become the property of a consortium of mining investors with extensive experience and JCHX will maintain 55 percent of this company.
“This transaction represents an opportunity to accelerate the progress of the Alacrán project And it will be an excellent result for the company’s shareholders. JCHX is a world leader in mines and operation of mines and contributes his proven experience in underground mining to the Alacrán project, ”said Sarah Armstrong-Montoya, executive director of Cordoba Minerals.
Alacrán project, in the municipality of Puerto Libertador, Córdoba. Photo:Cordoba Minerals
What is the potential of the Alacrán project?
The Alacrán project is located in the municipality of Puerto Libertador, Department of Córdoba, less than 30 kilometers from the nickel mine of Cerro Matoso (also for sale).
This project includes the copper, gold and silver deposit El Alacrán, In addition to the satellite deposits in Alacrán Norte, Montiel Este, Montiel West and Costa Azul. However, its current development is focused on the winging.
According to the feasibility study for the El Alacrán project published in December 2023, The copper open pit would be in operation for 14.2 years, with an initial capital expenditure of 420.4 million dollars.
Photo:stock
It is estimated that This mine could produce an average of 56.9 million pounds of copper per year, while gold would reach 39,000 ounces. There would also be a silver production of 382,000 ounces.
In order for the sale of the Alacrán project to be closed, it is necessary to count, among other things, with the Approval of the environmental Impact Study (EIA) by the National Environmental Licensing Authority (ANLA).
EIA settled in December 2023 and Its approval is necessary to obtain the environmental license which viable the construction of the mine.
Additionally, the WORK AND WORK PLAN (PTO) It settled in November 2021 before the National Mining Agency (ANM).
Building of the National Environmental Licensing Authority (ANLA), in Bogotá. Photo:Understand
What will the sale of the Alacrán project be?
According to the terms of the agreement signed with Veritas Resources AG, Cordoba Minerals will receive a cash payment of 88 million dollars at the close of the operation, In addition to a deferred payment of 12 million dollars.
This second payment must be made once commercial production begins in the Alacrán project or 36 months after the closing date of this sales operation.
Besides, Cordoba Minerals could receive a contingent payment of 8 million dollars or 28 million dollars, Depending on the price of copper in force at the time of commercial production in the Alacrán project.
The company intends to distribute the money that will receive its shareholders in cash, After liquidating all pending liabilities and obligations, but it will retain 5 million dollars for corporate purposes. Therefore, it estimates that the amount to be distributed will be between 65 million and 70 million dollars.
