M&A - Ivanhoe Electric Inc.
Form Type: 8-K
Filing Date: 2025-05-08
Corporate Action: Acquisition
Type: New
Accession Number: 000110465925045880
Filing Summary: On May 8, 2025, Ivanhoe Electric Inc. announced a significant transaction involving its 62.5% owned subsidiary, Cordoba Minerals Corp., which has made an offer accepted by JCHX Mining Management Co., Ltd. and associated parties for acquiring certain assets related to the Cordoba Parties' remaining 50% interest in the Alacrán copper-gold-silver deposit located in Colombia. The consideration for this acquisition totals up to $128 million, including an initial cash payment of $88 million, a deferred payment of $12 million contingent on production milestones, and potential additional payments based on copper prices. Cordoba is to distribute net proceeds to its shareholders post-closure while retaining sufficient funds to continue operations. The closing requires approval from various regulatory bodies and shareholder consent, with a timeline noted for completion by December 31, 2025. Customary agreements regarding confidentiality and dispute resolution are also outlined in the agreement. The filing includes a press release illustrating the transaction details.
Additional details:
Entry Into Material Definitive Agreement Date: 2025-05-08
Acquisition Description: Sale of remaining 50% interest in Alacrán copper-gold-silver deposit
Total Consideration: $128 million
Cash Payment On Closing: $88 million
Deferred Payment: $12 million
Deferred Payment Terms: to be paid within fifteen business days after commercial production or third anniversary of closing
Contingent Payment Structure: $8 million if copper price is between $12,000 and $13,000 per tonne; $28 million if over $13,000 per tonne
Closing Conditions: Approval by the Environmental Impact Assessment and other regulatory and shareholder approvals
Agreement Termination Date: December 31, 2025
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