Ivanhoe Electric Subsidiary Cordoba Minerals Announces Closing of Milestone Agreement with JCHX for Joint Development of the Alacran Copper Project in Colombia JCHX Acquires 50% of Cordoba’s Alacran Project for US$100 Million
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May 8, 2022
Ivanhoe Electric Subsidiary Cordoba Minerals Announces Closing
of Milestone Agreement with JCHX for Joint Development of the
Alacran Copper Project in Colombia
JCHX Acquires 50% of Cordoba’s Alacran Project for US$100 Million
Cordoba to Repay US$17.3 Million in Short-Term Loans to Ivanhoe
Electric
PHOENIX, ARIZONA – 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 subsidiary, Cordoba Minerals Corp.
(TSXV: CDB; OTCQB: CDBMF) (“Cordoba”) and JCHX Mining Management Co., Ltd.
(“JCHX”) have closed their strategic arrangement as previously described in Ivanhoe
Electric’s December 8, 2022 news release for the joint development of Cordoba’s
flagship Alacran Project in Colombia. Ivanhoe Electric currently owns 63.3% of
Cordoba.
With a portion of the cash proceeds from the initial installment paid by JCHX, Cordoba
will immediately repay all outstanding short-term loans previously provided by Ivanhoe
Electric. The total repayment is approximately US$17.3 million including accrued
interest. Ivanhoe Electric intends to use a portion of the loan repayment proceeds to
fund the initial exploration drilling program at its Tintic Copper-Gold-Silver Project in
Utah, which is expected to commence in May.
Cordoba plans to use the balance of cash proceeds from the JCHX acquisition to advance
the technical work program associated with the Feasibility Study for the Alacran Copper
Project. Additional details are provided in Cordoba’s news release.
JCHX Payment Schedule
JCHX has acquired a 50% ownership in the Alacran Project for US$100 million payable
in three installments. The initial cash installment of US$40 million has been paid by
JCHX upon closing.
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The second installment of US$40 million is payable in cash by JCHX at the earliest date
upon completion of a Feasibility Study for the Alacran Project and the submission of
the Environmental Impact Assessment (“EIA”) or, at the latest, by the second
anniversary of the closing of the transaction.
The third and final installment of US$20 million is payable in cash by JCHX 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 third and final installment,
which will result in JCHX being diluted to 40% and Cordoba increasing to a majority of
60% ownership of the Alacran Project.
About Ivanhoe Electric
Ivanhoe Electric is an American technology and mineral exploration company that is re-
inventing mining for the electrification of everything by combining advanced mineral
exploration technologies, renewable energy storage solutions and electric metals
projects predominantly located in the United States. Ivanhoe Electric uses its
Typhoon™ transmitter, an accurate and powerful geophysical survey system, together
with advanced data analytics provided by its subsidiary, Computational Geosciences
Inc., to accelerate and de-risk the mineral exploration process as well as to potentially
discover deposits of critical metals that may otherwise be undetectable by traditional
exploration technologies. Through its controlling interest in VRB Energy, Ivanhoe
Electric also develops and manufactures advanced grid-scale vanadium redox battery
storage systems. Finally, through advancing its portfolio of electric metals projects
located primarily in the United States, headlined by the Santa Cruz Copper Project in
Arizona and the Tintic Copper-Gold Project in Utah, as well as projects in Montana,
Nevada, Oregon and North Carolina, Ivanhoe Electric is also well positioned to support
American supply chain independence by delivering the critical metals necessary for
electrification of the economy.
Contact Information
Investors: Valerie Kimball, Director, Investor Relations 720-933-1150
Forward-looking statements
Certain statements in this 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 the company, 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”
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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 the
company’s current expectations regarding future events, performance and results and speak
only as of the date of this release.
Such statements include without limitation, statements with respect to the transactions with
JCHX, the use of proceeds by Cordoba from the transactions, timing of repayment of the short
term loans owing to Ivanhoe Electric, Ivanhoe Electric’s use of the loan repayment from
Cordoba, and the benefits of the transactions.
Forward-looking statements are based on management’s beliefs and assumptions and on
information currently available to management, including those provided to it by the
management of Cordoba. 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 changes in the prices of gold, copper or silver or
other metals that Ivanhoe Electric or Cordoba is exploring for; assumptions with respect to the
status of community relations and the security situation on site and in Colombia; general
business and economic conditions; continuity of drilling programs; the supply and demand for,
inventories of, and the level and volatility of the prices of metals; relationships with strategic
partners and significant shareholders including JCHX; 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 Ivanhoe Electric's interpretation of Cordoba's
drill results; the geology, grade and continuity of Cordoba's mineral deposits; the availability of
equipment, skilled labor and services needed for the exploration and development of mineral
properties; currency fluctuations; and 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 described in Ivanhoe Electric’s registration
statement on Form S-1, as amended, filed with the U.S. Securities and Exchange Commission
and base PREP prospectus filed with Canadian securities commissions.
No assurance can be given that such future results will be achieved by Ivanhoe Electric or
Cordoba. Forward-looking statements speak only as of the date of this press 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 release, and Ivanhoe Electric expressly disclaims any
requirement to do so.