Ivanhoe Electric Subsidiary Cordoba Minerals Signs Milestone Agreements with JCHX to Jointly Develop the Alacran Project in Colombia

JCHX to Acquire 50% of Cordoba's Alacran Project Stake for Total Cash Consideration of $100 million

PHOENIX, AZ / ACCESSWIRE / December 8, 2022 / IvanhoeElectric (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 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.

Foto: Accesswire

Key terms of the milestone agreements signed on December 7, 2022:

• 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).
• 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.

JCHX will satisfy the purchase price of $100 million as follows:

• At the closing of the transaction, which is expected to occur before the end of the first quarter of 2023, $40 million will be payable in cash.
• A second installment of $40 million is payable in cash upon completion of a Feasibility Study of the Alacran Project and the submission of the Environmental Impact Assessment ("EIA") to the relevant Colombian Government authority.
• A third and final installment of $20 million is payable in cash 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 final installment, which will result in JCHX being diluted to 40% and Cordoba increasing to a majority 60% shareholding in CMH.
• JCHX will advance a bridge loan of $10 million in cash to Cordoba, which is expected to be funded prior to the end of December 2022, following the signing of these milestone agreements and conditional upon JCHX shareholder approval. Upon closing of the transaction, the entire balance owing under the bridge loan and accrued interest will be applied towards the first installment payment as a payment in kind.

Closing of this transaction is subject to (among other customary conditions):

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