Marimaca Copper

Marimaca Copper Corp. (TSX: MARI, ASX: MC2) operates as a copper exploration and development company focused on its flagship Marimaca Copper Project in Chile's Antofagasta Region. The company owns the Marimaca Oxide Deposit (MOD), an IOCG-type copper deposit that represents one of the largest copper discoveries globally in the last decade. The project benefits from exceptional infrastructure access, with proximity to existing powerlines, water pipelines, major ports, and a skilled workforce in one of the world's premier mining jurisdictions.

The company's asset portfolio extends beyond the MOD to include over 15,000 hectares in the Sierra de Medina region, providing significant exploration upside potential. Recent drilling campaigns have validated the district-scale nature of mineralization, with notable discoveries at Pampa Medina demonstrating ultra-high-grade sediment-hosted copper mineralization that could substantially expand the company's resource base.

Marimaca maintains a strong capital structure with a market capitalization of approximately C$1 billion and recently completed a US$17.7 million private placement to fund ongoing development and exploration activities. The company trades on major exchanges including TSX, ASX, and OTCQX, providing broad investor access.

The global copper market presents compelling long-term fundamentals driven by electrification trends, renewable energy infrastructure, and urbanization in developing markets. Copper demand is expected to grow significantly over the next decade, while new mine supply remains constrained due to declining ore grades and limited major discoveries. This supply-demand imbalance positions well-located, low-cost copper projects as highly valuable assets.

Marimaca's MOD benefits from several unique characteristics that enhance its economic potential. The deposit contains 200.3 million tonnes of Measured and Indicated resources grading 0.45% total copper, with 86% of resources classified in the higher-confidence M&I categories. The favorable deposit geometry allows for a low strip ratio operation with high-grade zones accessible from surface, potentially improving early-year economics and shortening payback periods.

The project's location in Chile's established Coastal Copper Belt provides access to proven infrastructure and regulatory frameworks. Located within 25km of the Port of Mejillones and 40km from Antofagasta, the project benefits from proximity to existing seawater pipelines, 110kV powerlines, and the Pan-American Highway. This infrastructure access significantly reduces execution risk and capital requirements compared to greenfield projects in remote locations.

Recent exploration success at Pampa Medina has revealed ultra high grade sediment-hosted copper mineralization with intersections including 6 meters of 12.0% copper within 26 meters of 4.1% copper. This discovery style represents a unique geological setting in Chile, potentially analogous to major African sediment-hosted deposits, and could substantially expand the company's resource inventory and production profile.

Marimaca's leadership combines deep technical expertise with relevant regional experience and strong capital markets backgrounds. CEO Hayden Locke brings nearly 20 years of senior executive experience in mining and finance, including previous roles as Head of Corporate Development at Papillon Resources and CEO of Emmerson Plc. His track record includes successfully advancing development-stage mining projects and completing strategic transactions.

VP Exploration Sergio Rivera provides over 30 years of exploration geology experience and is credited with several major copper discoveries including the original Marimaca discovery. His geological expertise and understanding of regional mineralization systems have been instrumental in defining the district-scale potential of the property package.

The management team includes significant in-country operational experience through Managing Director Jose Antonio Merino, who brings 15 years of international experience in natural resources with prior roles at SQM, and VP Projects Oscar Valenzuela, who has over 35 years of mining industry experience including senior operational roles at Capstone Copper's Chilean operations.

Board composition reflects a blend of exploration, development, and financial expertise. Non-Executive Chairman Michael Haworth co-founded Greenstone Resources and brings nearly 30 years of resources advisory and investment experience. Directors include Clive Newall, co-founder of First Quantum with extensive copper exploration and development experience and Giancarlo Bruno Lagomarsino, formerly CEO of Mantos Copper SA, which merged with Capstone to create Capstone Copper.

Marimaca's growth strategy centers on a dual-track approach of advancing the MOD toward production while simultaneously expanding the resource base through systematic exploration across the broader district. The company is currently completing a Definitive Feasibility Study for the MOD, targeting release in the near term, with permitting progressing through the expedited DIA route that could enable a construction decision by H1 2026.

The development plan envisions a simple open-pit mining operation utilizing conventional SX-EW processing technology. Seven phases of metallurgical testing have been completed, establishing a robust geometallurgical model that will underpin recovery and acid consumption assumptions in the DFS. The processing approach targets heap leach recovery of 72-75% of total copper, utilizing recycled seawater from the Bay of Mejillones to eliminate freshwater requirements.

Exploration activities focus on two primary objectives: near-mine extensions of oxide and sulphide mineralization around the MOD, and district-scale target evaluation across the Sierra de Medina region. The Pampa Medina discovery represents a significant step-out success, with drilling having defined high-grade mineralization across a 1,000m x 600m area. The company has allocated a 14-hole follow-up program targeting extensions and delineation of the mineralized manto system.

The hub-and-spoke development concept leverages the MOD processing infrastructure to potentially treat ore from satellite deposits, maximizing capital efficiency and extending mine life. Identified exploration targets across the district include Cindy, Mercedes, Tarso, Sierra, and Roble targets, with conceptual potential ranging from 20-40 million tonnes at grades between 0.2-0.4% copper.

Marimaca's financial position reflects a well-capitalized development company with sufficient resources to advance key milestones. As of March 31, 2025, the company maintained US$14.9 million in cash with no debt obligations. The recent completion of a US$17.7 million private placement provides additional funding for exploration activities and project advancement.

The financing was completed at C$4.60 per share, representing participation from both existing strategic shareholders and new institutional investors. Major shareholders include Greenstone Resources at 25.3%, Assore at 15.0%, and Ithaki Limited at 9.5%, providing a stable ownership base with mining industry expertise and long-term investment horizons.

Capital requirements for MOD development will be defined in the upcoming DFS, though the project's favorable characteristics including low strip ratio, simple processing, and excellent infrastructure access should support competitive capital intensity metrics. The 2020 PEA, while no longer current, demonstrated the potential for attractive project economics, and the 44% increase in M&I resources since that study suggests improved scale and potential economics.

Discovery costs have been exceptionally low at under US$0.02 per pound of copper, reflecting the efficiency of the exploration program and the high-grade nature of discoveries. This cost efficiency provides a strong foundation for returns on exploration investment and suggests potential for additional value creation through further resource expansion.

Analyst coverage includes major investment banks such as BMO Capital Markets, RBC Capital Markets, Canaccord, and others, providing research support and market visibility. The company's dual listing on TSX and ASX provides access to both North American and Australian capital markets.

Marimaca Copper represents a compelling investment opportunity in the copper development space, combining a substantial, high-confidence resource base with exceptional infrastructure access and district-scale exploration potential. The MOD's favorable characteristics including low strip ratio, simple processing requirements, and proximity to existing infrastructure should support competitive development economics and reduced execution risk relative to greenfield projects.

The recent Pampa Medina discovery adds a new dimension to the investment thesis, demonstrating the potential for significant resource expansion and validating the district-scale geological model. The ultra-high-grade sediment-hosted mineralization represents a unique geological setting in Chile and could substantially enhance the company's production profile and mine life.

Management's dual-track strategy of advancing the MOD toward production while systematically exploring the broader district provides multiple value creation pathways. The experienced team combines technical expertise with relevant regional knowledge and demonstrated track records in project development and capital markets.

The company's financial position provides adequate resources to advance key milestones, while the strong shareholder base including industry-focused investors offers strategic support and capital market access. The timing appears favorable given improving copper market fundamentals driven by global electrification trends and constrained new supply.

Key catalysts include DFS release, permitting progress, exploration results from ongoing drilling campaigns, and ultimately a construction decision. The combination of near-term development potential with longer-term district-scale opportunities positions Marimaca as a differentiated opportunity in the copper sector with multiple potential value inflection points over the coming 12-24 months.