A conditional Framework Agreement was signed among JCHX, Cordoba Minerals (a subsidiary of Ivanhoe Capital Group) and its wholly-owned subsidiaries on December 8, 2022 to jointly develop the Alacran Project in Colombia, in which JCHX proposed to purchase a 50% ownership interest in CMH Colombia S.A.S. (“CMH”, wholly-owned by Cordoba Minerals), for an aggregate consideration of US$ 100 million.
Previously, JCHX has acquired 19.995% of Cordoba Minerals stake through initial strategic partnership. At closing of the transaction JCHX and Cordoba Minerals will respectively own 50% of CMH equities, CMH currently possessess Alacran Copper & Gold & Silver Deposit of San Matias Project, and henceforth it shall be the joint venture vehicle for JCHX and Cordoba to jointly develop San Matias Project. Besides, JCHX (or its affiliate) will have the right of first offer to bid on the Engineering, Procurement and Construction (EPC) and Detailed Design Agreement (FEED) contracts.
The signing ceremony was held online with the attendance of Mr. Wang Xiancheng, Chairman of JCHX Group, Mr. Wang Qinghai, Chairman of JCHX Mining, Mr. Peng Huaisheng, President of JCHX Group, Mr. Yin Shizhou, CFO of JCHX Group, Mr. Robert Friedland, Chairman of Ivanhoe Capital Group, Mr. Zhou Chao, Executive VP of Ivanhoe Capital Group and President of Ivanhoe China, Mr. Wang Song, GM of Investment & Corporate Development of Ivanhoe China, and Ms. Sarah Armstrong-Montoya, CEO of Cordoba Minerals.
Mr. Wang Xiancheng indicated that this strategic arrangement is another major move by JCHX in mining investment sector, which is in line with the corporate strategy of JCHX, while laying a solid foundation for further expansion of business and supporting the sustainable, steady, and healthy growth of JCHX.
Then Mr. Friedland extended his heartfelt appreciation for the continuous supports from JCHX and highly recognized the remarkable achievements JCHX has made so far before expressing sincere expectation on joint efforts from both sides to expedite exploration and development of the project and to deepen cooperation.
Mr. Zhou Chao pointed out that the partnership between JCHX and Ivanhoe can be traced back to over two decades ago, a long-term multi-level and mutual-beneficial cooperation has been maintained since then, the proposed new investment takes such partnership to a new level. Ivanhoe aspires to create more values for Cordoba stakeholders and bring more benefits to local communities through further exploration of complementary advantages of both parties.
Ms. Sarah Armstrong-Montoya delivered her sincere gratitude for the tremendous and constant support from JCHX since 2019. Over the past three years, the partnership between JCHX and Cordoba was strengthened in all aspects. She also expressed unwavering confidence in developing Alacran into a benchmark copper project in Colombia with best ESG practices in South America through joint efforts from both sides.
