Cordoba Minerals Completes C$15 Million Rights Offering
Cordoba Minerals Completes C$15 Million
Rights Offering
Vancouver, British Columbia--(Newsfile Corp. - September 24, 2021) - Sarah Armstrong-Montoya,
President and Chief Executive Officer of Cordoba Minerals Corp.
(TSXV: CDB) (OTCQB: CDBMF)
(otherwise "Cordoba" or the "Company") announces today that the Company has completed its
previously announced rights offering (refer to Cordoba's news release dated
August 16, 2021
) and has
issued
27,777,777 common shares for aggregate gross proceeds of C$15 million. This represents
100% of the maximum number of Rights Shares issuable under the Rights Offering. The Company now
has 89,001,375 common shares issued and outstanding.
Under the Rights Offering, 23,814,389 Rights Shares were issued to shareholders upon exercise of their
subscription right under the offering. This included exercise of the full basic subscription by each of
Ivanhoe Electric Inc. ("
Ivanhoe Electric
"), the Company's majority shareholder, and by JCHX Mining
Management Co. Ltd. ("
JCHX
") who retained its 19.99% interest. The balance of the Rights Shares,
being 3,963,388 Rights Shares, were acquired by Ivanhoe Electric pursuant to its Standby Commitment.
In consideration for the Standby Commitment, Ivanhoe Electric received 1,465,234 5-year warrants at an
exercise price equal to C$0.77 per Common Share. Upon completion, Ivanhoe Electric holds
56,390,193 shares, representing 63.36% of the shares issued and outstanding.
"We are delighted to have received support from our minority shareholders, majority shareholder Ivanhoe
Electric and key shareholder JCHX, which will enable us to complete the Pre-Feasibility Study at the
Alacran Project and conduct exploration activities on Cordoba's mineral projects," said Sarah
Armstrong-Montoya, President and Chief Executive Officer of Cordoba.
With the proceeds from the Rights Offering, Cordoba intends to complete the Pre-Feasibility Study at its
100%-owned Alacran Copper-Gold-Silver Project in Colombia, which is expected to be completed in Q4
2021. In addition, the Company plans to use net proceeds for exploration activities, including exploration
diamond drilling, on its mineral projects. Remaining proceeds from the Rights Offering will be used for
operating costs in Colombia and the USA, corporate general and administrative costs, and other
general working capital purposes, including repayment of a bridge loan provided by Ivanhoe Electric in
an amount of approximately US$1.15 million (see press release dated
August 16, 2021
).
Ivanhoe Electric and JCHX are "related parties" of the Company under Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions ("MI 61-101") as each exercise control
and direction over more than 10% of the issued and outstanding Common Shares. The Rights Offering
was not subject to the related party rules under MI 61-101 based on a prescribed exception related to
rights offerings.
About Cordoba
Cordoba Minerals Corp. is a mineral exploration company focused on the exploration, development and
acquisition of copper and gold projects. Cordoba is developing its 100%-owned San Matias Copper-
Gold-Silver Project, which includes the Alacran Deposit and satellite deposits at Montiel East, Montiel
West and Costa Azul, located in the Department of Cordoba, Colombia. Cordoba also holds a 25%
interest in the Perseverance Copper Project in Arizona, USA, which it is exploring through a Joint
Venture and Earn-In Agreement. For further information, please visit
www.cordobaminerals.com
.
ON BEHALF OF THE COMPANY
Sarah Armstrong-Montoya, President and Chief Executive Officer
Information Contact
Ran Li +1-604-689-8765
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
This news release includes "forward-looking statements" and "forward-looking information" within the
meaning of Canadian securities legislation. All statements included in this news release, other than
statements of historical fact, are forward-looking statements including, without limitation, the intended
use of the proceeds raised under the Rights Offering; the timing and completion of the Pre-Feasibility
Study at Alacran; the timing and completion of exploration and drilling; and exploration plans and
targets. Forward-looking statements include predictions, projections and forecasts and are often, but
not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect",
"potential", "target", "budget" and "intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar expressions and includes the
negatives thereof.
Forward-looking statements are based on a number of assumptions and estimates that, while
considered reasonable by management based on the business and markets in which the Company
operates, are inherently subject to significant operational, economic, and competitive uncertainties,
risks and contingencies. These include assumptions regarding, among other things: the Company's
receipt of all necessary regulatory, stock exchange and third party approvals in respect of the Rights
Offering, including the final TSXV approval; risks that could cause the Company to allocate the
proceeds of the Rights Offering in a manner other than as disclosed; and that the Rights Offering will
provide sufficient liquidity to support the Company's intended use of the proceeds therefrom. In
addition, forward-looking statements are also based upon assumptions about general business and
economic conditions; the availability of additional exploration and mineral project financing; the
supply and demand for, inventories of, and the level and volatility of the prices of metals; relationships
with strategic partners; the timing and receipt of governmental permits and approvals; the timing and
receipt of community and landowner approvals; changes in regulations; political factors; the accuracy
of the Company's interpretation of drill results; the geology, grade and continuity of the Company's
mineral deposits; the presence and volume of porphyry copper-gold deposits at the Alacran and
Montiel West projects; the availability of equipment, skilled labour and services needed for the
exploration and development of mineral properties; and currency fluctuations. There can be no
assurance that forward-looking statements will prove to be accurate and actual results, and future
events could differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's expectations include actual exploration
results, interpretation of metallurgical characteristics of the mineralization, changes in project
parameters as plans continue to be refined, future metal prices, availability of capital and financing on
acceptable terms, general economic, market or business conditions, uninsured risks, regulatory
changes, delays or inability to receive required approvals, unknown impact related to potential
business disruptions stemming from the COVID-19 outbreak, or another infectious illness, and other
exploration or other risks detailed herein and from time to time in the filings made by the Company
with securities regulators, including those described under the heading "Risks and Uncertainties" in
the Company's most recently filed MD&A. The Company does not undertake to update or revise any
forward-looking statements, except in accordance with applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/97592