Colombian Copper-Gold Asset Changes Hands in $128M Deal

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Thursday, May 8, 2025

Dealmaking in the resource sector remains active as companies look to capitalize on rising precious metal prices. Today, a major agreement was announced involving one of Colombia’s most advanced copper-gold development assets.

Cordoba Minerals Corp. (TSX-Venture: CDB) (OTCQB: CDBMF) announced a major agreement to sell its remaining 50% stake in the Alacrán Project, a leading copper-gold development asset in Colombia, along with its other Colombian exploration assets and certain receivables. 

This transaction marks a strategic shift for Cordoba and provides an immediate cash injection of US$88 million, with the potential for up to an additional US$40 million in future payments. The buyer, Veritas Resources AG, currently owns the other 50% of the Alacrán Project and is a subsidiary of JCHX Mining Management, a significant Cordoba shareholder.

The sale will be completed through the transfer of Cordoba’s Colombian subsidiaries, Minerales Cordoba S.A.S. and Exploradora Cordoba S.A.S., to Veritas. After the transaction, Veritas will be controlled by a group of experienced mining investors, with JCHX retaining a 55% stake. 

This deal allows Cordoba to focus on new strategic opportunities while monetizing its Colombian assets, and it ensures continuity of the Alacrán Project under an experienced ownership structure.

The terms of the agreement include a US$88 million upfront cash payment and a deferred US$12 million payment tied to either production start or a 36-month timeline. A contingent payment between US$8 million and US$28 million is also possible, based on future copper prices, though it may be nullified if prices fall below a set threshold. 

Additionally, Cordoba will pay a 1% success fee on the first US$100 million in proceeds to Ivanhoe Mines Consulting Services for financial advisory support in the deal.

Shares of CDB are their U.S. listing (CDBMF) are currently halted as a result of this announcement.

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