(Kitco News) - Ivanhoe Electric (NYSE:IE, TSX: IE) announced today that its subsidiary Cordoba Minerals (TSXV: CDB) and JCHX Mining have agreed to a strategic arrangement for the joint development of Cordoba's flagship Alacran project in Colombia. Ivanhoe Electric owns a 63.27% interest in Cordoba.
According to the company's statement, JCHX, through a wholly owned subsidiary, will purchase a 50% ownership interest in CMH Colombia S.A.S. ("CMH"), a company existing under the laws of Colombia, for aggregate consideration of $100 million (approximately C$136 million).
Ivanhoe said that CMH will own 100% of the Alacran project and will be the joint venture vehicle for Cordoba and JCHX in this strategic project level partnership, adding that key decisions to be governed by a joint venture shareholders' agreement.
Cordoba Minerals 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.
On its website, Cordoba indicated that the Alacran project is positioned to be the largest copper mine in Colombia in the near future. In 2018, the Alacran project was declared a "Project of National Interest" by the Colombian Government, which denotes a significantly high priority for the country. Cordoba said it continues to advance the feasibility study for the project.
Established in 1997, JCHX Mining is one of the top mining construction companies in China. The company is mainly engaged in mine development and construction, contract mining and research & development of mining technologies.
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