Ivanhoe Electric Subsidiary Cordoba Minerals Corp. Signs Definitive Agreement to Sell Remaining 50% Stake in Alacrán Copper Project in Colombia Initial Cash Proceeds of US $88 Million to be Paid on Closing with an Additional US $12 Million Paid upon Commercial Production
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May 8, 2025
Ivanhoe Electric Subsidiary Cordoba Minerals Corp. Signs Definitive
Agreement to Sell Remaining 50% Stake in Alacrán Copper Project
in Colombia
Initial Cash Proceeds of US $88 Million to be Paid on Closing with
an Additional US $12 Million Paid upon Commercial Production
US $100 Million Purchase Price Represents a Value per Cordoba
Minerals Corp. Common Share of US $1.10 or CDN $1.52
Ivanhoe Electric Anticipates Receiving a Cash Distribution of Over
US $40 Million from the Initial Proceeds
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE;
TSX: IE) Executive Chairman Robert Friedland and President and Chief Executive
Officer Taylor Melvin are pleased to announce that Ivanhoe Electric’s 63%-owned
subsidiary, Cordoba Minerals Corp. (TSXV: CDB; OTCQB: CDBMF) (“Cordoba”) has
signed a definitive Framework Agreement (the “Agreement”) for the sale of the
remaining 50% of the Alacrán Copper Project to a consortium of investors including
JCHX Mining Management Co., Ltd. (“JCHX”), a 19.8% shareholder of Cordoba, for US
$88 million in cash on closing, US $12 million in a deferred payment, and up to US $28
million in a contingent payment (the “Transaction”). JCHX acquired its initial 50% of the
Alacrán Copper Project in May 2023 for total cash consideration of US $100 million
(refer to Ivanhoe Electric’s May 8, 2023 news release).
Mr. Melvin commented: “Today’s announcement is an excellent outcome for Cordoba
and all of its shareholders. Upon closing, JCHX and its consortium partners will be in a
strong position to fund and advance the development of the Alacrán Copper Project.
This transaction will be an important milestone for Ivanhoe Electric towards the
monetization of our long-term investment in the Alacrán Copper Project. Proceeds
received from the transaction will be used to support our U.S.-based projects and other
exploration initiatives.”
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The Agreement was signed on May 8, 2025. Ivanhoe Electric has completed an 8-K filing
of the Agreement with the U.S. Securities and Exchange Commission.
A consortium, including JCHX, will acquire the remaining 50% ownership in the
Alacrán Copper Project for total cash consideration of up to US $128 million
The Transaction will be completed through the sale of two of Cordoba’s indirect, wholly
owned subsidiaries, Minerales Cordoba S.A.S. and Exploradora Cordoba S.A.S., to
Veritas Resources AG, an entity that currently holds the other 50% interest in the
Alacrán Copper Project.
Terms of the transaction include:
1) initial cash payment of US $88 million payable by the consortium upon closing;
2) deferred cash payment of US $12 million on the earlier of:
a) commencement of commercial production at the Alacrán Copper Project;
or
b) 36 months from the closing date; and
3) a potential contingent cash payment based on the prevailing copper price at the
time of commercial production at the Alacrán Copper Project:
a) US $8 million if the copper price is between US $12,000 and US $13,000 per
tonne; or
b) US $28 million if the copper price is greater than US $13,000 per tonne.
After retaining a US $5 million working capital reserve, the payment of taxes, fees, and
other costs associated with negotiating and closing the transaction, and after settling
all outstanding liabilities and obligations, it is estimated that approximately US $65 to
US $70 million in cash will be available for distribution to Cordoba shareholders, of
which Ivanhoe Electric’s share would be over US $40 million.
It is a requirement of the Agreement that the Transaction is completed by December 31,
2025. Closing of the transaction is subject to certain conditions, including but not
limited to:
1) approval by the TSX Venture Exchange;
2) approval by Cordoba shareholders at a special meeting of shareholders held in or
around August 2025, but in no event later than September 15, 2025; and
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3) approval of the Environmental Impact Assessment for the Alacrán Copper Project
by Colombia’s Autoridad Nacional de Licencias Ambientales.
Following the closing of the Transaction, Cordoba will continue to be a publicly listed
company on the TSX Venture Exchange with its 51%-owned Perseverance Copper
Project located in Arizona. Cordoba can earn up to 80% interest in the Perseverance
Copper Project by completing a total of CDN $14.2 million in exploration expenditures
by April 2026. In addition, Cordoba will search for business development opportunities.
Ivanhoe Electric will continue to hold the majority of the Company’s shares.
The disclosure of the transactions in this press release is necessarily of a summary
nature and is qualified by text of the Agreement itself, which will be filed with the U.S.
Securities and Exchange Commission.
About Cordoba Minerals Corp.
Cordoba Minerals Corp. (Cordoba) is a publicly traded copper-gold developer with high-
potential projects in underexplored, world-class porphyry copper belts. Cordoba has a
management team with a demonstrated track record of acquiring, exploring, and
developing mineral projects in the Americas and around the world, and the strong
financial and technical backing of cornerstone investors, Ivanhoe Electric and JCHX.
Cordoba trades on the TSX.V: CDB and OTCQB: CDBMF.
Website: www.cordobaminerals.com
About Ivanhoe Electric
We are a United States domiciled minerals exploration company with a focus on
developing mines from mineral deposits principally located in the United States. We
seek to support American supply chain independence by finding and delivering the
critical metals necessary for electrification of the economy, with a focus on copper. We
use our accurate and powerful Typhoon™ geophysical surveying system, together with
advanced data analytics provided by our 94.3% owned subsidiary, Computational
Geosciences Inc. (“CGI”), to accelerate and de-risk the mineral exploration process as
we seek to discover new deposits of critical metals that may otherwise be undetectable
by traditional exploration technologies. We believe the United States is significantly
underexplored and has the potential to yield major new discoveries of critical metals.
Our mineral exploration efforts focus on copper as well as other metals including
nickel, vanadium, cobalt, platinum group elements, gold and silver. Through the
advancement of our portfolio of electric metals exploration projects, headlined by the
Santa Cruz Project in Arizona as well as other exploration projects in the United States,
we intend to support the United States' supply chain independence by finding and
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delivering critical metals necessary for the electrification of the economy. We also
operate a 50/50 joint venture with Saudi Arabian Mining Company Ma’aden ("Ma'aden")
to explore for minerals on ~48,500 km2 of underexplored Arabian Shield in Saudi
Arabia.
Website: www.ivanhoeelectric.com
Contact Information
Mike Patterson
Vice President, Investor Relations and Business Development
Email: [email protected]
Phone: 1-480-601-7878
Follow us on
Ivanhoe Electric’s Executive Chairman Robert Friedland: @robert_ivanhoe
Ivanhoe Electric: @ivanhoeelectric
Ivanhoe Electric’s investor relations website located at www.ivanhoeelectric.com should be
considered Ivanhoe Electric’s recognized distribution channel for purposes of the Securities
and Exchange Commission’s Regulation FD.
Forward-Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-
looking information” within the meaning of applicable U.S. and Canadian securities laws. Such
statements and information involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of Ivanhoe Electric, its
projects, or industry results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as “may”, “would”, “could”, “will”,
“intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”
and other similar terminology, or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. These statements reflect Ivanhoe
Electric’s current expectations regarding future events, performance and results and speak
only as of the date of this news release.
Such statements in this news release include, without limitation statements related to the ability
and timing of Cordoba and JCHX to obtain all necessary regulatory and third party approvals
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and satisfy other applicable conditions to close the transaction, including approval of the
transaction by the Cordoba shareholders and the TSX Venture Exchange and approval of the
Environmental Impact Assessment for the Alacrán Copper Project by Colombia’s Autoridad
Nacional de Licencias Ambientales; the payments and net proceeds contemplated under the
Agreement; the amount of any dividend to Ivanhoe Electric and the use of those proceeds; and
Cordoba’s ability to earn up to 80% interest in the Perseverance Copper Project.
Forward-looking statements are based on management’s beliefs and assumptions and on
information currently available to management. Such statements are subject to significant risks
and uncertainties, and actual results may differ materially from those expressed or implied in
the forward-looking statements due to various factors, including the inability of Cordoba and
JCHX to successfully obtain all necessary regulatory and third party approvals and satisfy
other applicable conditions to the transaction; the ability to close the transaction on the timeline
anticipated, or at all; the receipt by us and Cordoba of all of the payments called for by the
Agreement and such payments being applied in the manner currently anticipated; changes in
the prices of copper or other metals Ivanhoe Electric is exploring for; the results of exploration
and drilling activities and/or the failure of exploration programs or studies to deliver anticipated
results or results that would justify and support continued exploration, studies, development or
operations; the final assessment of exploration results and information that is preliminary; the
significant risk and hazards associated with any future mining operations, extensive regulation
by the U.S. government as well as local governments; changes in laws, rules or regulations, or
their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe
Electric to perform as agreed; and the impact of political, economic and other uncertainties
associated with operating in foreign countries, and the impact of the COVID-19 pandemic and
the global economy. These factors should not be construed as exhaustive and should be read
in conjunction with the other cautionary statements and risk factors described in Ivanhoe
Electric’s Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange
Commission at www.sec.gov.
No assurance can be given that such future results will be achieved. Forward-looking
statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to
place undue reliance on these forward-looking statements. Subject to applicable securities
laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking
statements contained herein to reflect events or circumstances occurring after the date of this
news release, and Ivanhoe Electric expressly disclaims any requirement to do so.