Ivanhoe Electric subsidiary Cordoba Minerals and JCHX Mining Management have signed an arrangement to jointly develop Cordoba’s Alacran copper-gold-silver project in Colombia.

Under the arrangement, JCHX will acquire a 50% stake through a wholly owned subsidiary in CMH Colombia S.A.S. (CMH) for $100m.

A company existing under the laws of Colombia, CMH will hold 100% of the Alacran Project. It will be the joint venture vehicle for JCHX and Cordoba in the project-level partnership.

JCHX will pay $40m in cash upon deal closing, which is expected by the end of Q1 2023. A further $40m in cash will be paid upon completion of the project’s feasibility study and submission of its environmental impact assessment (EIA).

The firm will make an additional $20m cash payment upon securing the EIA approval, which is anticipated within two years.

JCHX will also advance a $10m bridge loan in cash to Cordoba, following the signing of the milestone agreements.

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Cordoba president and CEO Sarah Armstrong-Montoya said: “With JCHX’s continual unwavering confidence in Cordoba, it comes with no surprise when the time came for the Alacran project to find a partner, we conclusively arrived at JCHX.

“It is a huge advantage to have a vastly experienced mining and construction expert join us at the project level to support the development of the Alacran project, especially given that JCHX brings the added benefit of being very familiar with Cordoba.”

JCHX will have a permit for production offtake of up to 100% under the current feasibility study of the Alacran Project.

Ivanhoe Electric holds a 63.27% stake in Cordoba.