Cordoba Minerals Corp. (TSXV:CDB; OTCQB:CDBMF) announced that it intends to issue an aggregate of 3,713,687 common shares of the Company (the “First Tranche Shares”) at a price of C$0.0895 per First Tranche Share representing an aggregate value of approximately C$332,375 (US$250,000 on the deemed conversion date) to two arm’s length parties (the “Subscribers”) pursuant to the terms of subscription agreements between the Company and each of the Subscribers (the “Subscription Agreements”).
The Subscription Agreements were entered into in connection with Cordoba obtaining an extension on certain obligations due under an option agreement among the Company, Minerales Cordoba S.A.S, Sociedad Ordinaria de Minas OMNI, Compania Minera El Alacran S.A.S., CMH Colombia S.A.S., Cobre Minerales S.A.S. and Exploradora Cordoba S.A.S. dated February 27, 2016 (the “Option Agreement”), and in consideration for work and services provided by the parties for the Company.
The Subscription Agreements contemplate a second issuance of common shares in the capital of the Company with a combined value of US$250,000 (the “Second Tranche Shares”) to be issuedto the Subscribers at the time of the fifth and final option payment to be made pursuant to the Option Agreement, which is due on or before June 30, 2020.
The Company further announces that in relation to the First Tranche Shares, JCHX Mining Management Co., Ltd. (“JCHX”) has agreed to subscribe for 928,401 common shares in the capital of the Company (the “JCHX Shares” collectively with the First Tranche Sharesthe “Shares”) at a price of C$0.0516 per JCHX Share for gross proceeds of approximately C$47,905 pursuant to the terms of a subscription agreement to be entered between the Company and JCHX.
Cordoba intends to use the proceeds for working capital and general corporate purposes.
The issuance of the Shares is subject to the approval of the TSX Venture Exchange. Shares issued to the Subscribers will be subject to a four-month and one day hold period from the date of issue.
Please see the Cordoba website for more information.