Cordoba Minerals (CDB.V) which owns the very interesting San Matias copper-gold project in Colombia, has announced it has signed an agreement with High Power Exploration (HPX), a vehicle of Robert Friedland, a well-known mining entrepreneur.
As part of the agreement, HPX will invest C$1M in Cordoba Minerals at a share price of C$0.14, giving it an 11% direct stake in the company. As part of the deal, HPX will exercise the warrants priced at C$0.20 that were attached to this deal, on the condition Cordoba Minerals will spend the entire C$2.5M on the property. Thereafter, HPX can choose to fund an additional C$16.5M to gain a 65% stake in the property with a minimum of C$6M to be spent to earn an initial 25% interest.
This is an excellent deal for Cordoba Minerals as not only did it attract a renowned partner, that partner is also spending a very fair amount of cash on the property.
> Click here to go to Cordoba’s website
Disclosure: The author holds no position in Cordoba. Please see our disclaimer for current positions.
