Cordoba Minerals Exits Alacrán Project with Strategic $128 Million Deal
Cordoba Minerals has agreed to sell its remaining 50% stake in the Alacrán Project in Colombia to Veritas Resources. This strategic divestment totals up to $128 million and includes other mineral exploration assets and receivables. The Alacrán Project, located in northern Colombia, is a copper-gold-silver development asset known for its significant resource potential.
Veritas to Take Full Control of Alacrán with JCHX in the Lead
The deal will be executed through the sale of Cordoba’s Colombian subsidiaries, Minerales Cordoba and Exploradora Cordoba. Veritas Resources, currently owning the other 50%, will assume full ownership. Veritas is an indirect, wholly owned unit of JCHX Mining Management, a major Chinese underground mining firm. JCHX already owns 19.81% of Cordoba Minerals and will retain a 55% controlling interest in Veritas post-transaction.
Upon closing, Cordoba will receive $88 million in immediate cash and may earn up to $40 million more through deferred and contingent payments. A $12 million deferred payment will be triggered by the start of commercial production or within 36 months. Additional contingent payments between $8 million and $28 million depend on future copper prices, with no payment if copper prices fall below an agreed threshold.
Shareholders to Benefit as Cordoba Refocuses Its Strategy
Cordoba plans to return between $65 million and $70 million of the proceeds to shareholders after repaying debt and setting aside $5 million for corporate needs. Shareholder and regulatory approvals are pending, and the company aims to complete the distribution within six months of closing. The TSX Venture Exchange and Colombian environmental authorities must also approve the transaction.
Cordoba CEO Sarah Armstrong-Montoya emphasized that this agreement accelerates the project’s development while creating value for shareholders. She highlighted JCHX’s global expertise in mine development, especially in large-scale underground operations.
Following the sale, Cordoba will retain its listing on the TSX Venture Exchange and shift its focus to new opportunities, including its Perseverance property in Arizona. Ivanhoe Electric, a key shareholder, will remain the company’s majority owner. Additionally, Ivanhoe Mines Consulting Services (Beijing) will earn a 1% success fee on the first $100 million raised.
This move signals a clear transition for Cordoba from project development to corporate repositioning, as it leaves one of Colombia’s most promising copper-gold-silver projects in experienced hands.
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