Marimaca Copper Achieves Key Permitting Milestone, on the Path to Production

• Marimaca Copper is developing the Marimaca Oxide Copper Deposit in Chile's Antofagasta region, on track for construction in early 2026
• Received positive permitting milestone (ICSARA) confirming fast-tracked DIA (Environmental Impact Statement) process, validating development timeline
• Focused on sustainable practices like using sea water, strong community relations in local town of Mejillones
• Consolidated nearby deposits like Pampa Medina offer significant resource expansion and production growth potential
• Well-timed for anticipated copper supply crunch in late 2020s, with most comparable projects further behind

Marimaca Copper Corp is a copper development company advancing the Marimaca Oxide Deposit (MOD) project, an oxide copper deposit in Chile's premier mining jurisdiction of Antofagasta.

The company has been making steady progress in de-risking and moving this project towards production on an accelerated timeline, with several recent milestones. Marimaca is now well-positioned to be one of the few new copper mines to enter production by the end of the decade, a period when supply deficits are expected to emerge in the global copper market.

Permitting Process & Milestones

One of the most important de-risking events for any mining project is successfully navigating the environmental permitting process. Marimaca has been making excellent progress on this front, recently receiving an important milestone called the ICSARA - the Informe Consolidado de Solicitud de Aclaraciones, Rectificaciones y/o Ampliaciones (Consolidated Request for Clarifications, Rectifications and/or Extensions).

Following the submission of the Declaración de Impacto Ambiental (Environmental Impact Statement, or DIA) in December 2024, receipt of the ICSARA is the first milestone for Marimaca under its permitting process. The Company will now work towards the Resolución de Calificación Ambiental (Environmental Qualification Resolution, or RCA) with the hope of achieving this in late 2025.

As Nico Cookson, VP of Corporate Development, details, this first step in the permitting process with the ICSARA provides validation of Marimaca's permitting approach:

"Post submission, there was basically a 45 day review period from the regulators reviewing everything you submitted alongside your DIA... The progression with the ICSARA is affirmation from the regulators that they feel we can continue to progress with the DIA."

The DIA is the faster of two permitting routes in Chile, which Marimaca is eligible for as a project without significant environmental impacts. Receipt of the XARA and continuation in the DIA process confirms Marimaca's development timeline, with permitting on track for completion later this year. This would enable construction to commence in early 2026.

Interview with VP of Corporate Development, Nico Cookson

Environmental & Social Risk Management

A key aspect of Marimaca's permitting success has been the company's proactive approach to environmental and social risks. Water scarcity is a particular concern for mining in the Atacama desert. Recognizing this early, Marimaca has designed its project to utilize sea water from the nearby coast, avoiding any impact on scarce freshwater resources.

Local community relations have also been a priority. Marimaca has held several public consultations in the nearest municipality of Mejillones, receiving positive feedback. The project is expected to bring jobs and economic benefits to the community.

Cookson notes that this emphasis on sustainability is a core aspect of the company's strategy and vision:

"We have the opportunity to present a project that is sort of at the forefront of sustainability and a sustainable approach to development. So that's been a focus for us for the last 12 months and it's been going very well."

Team Development & Project Execution

As Marimaca has advanced the engineering and permitting, it has also been building out its team to prepare for the next phase:

"Last year we recognized that if things go to plan in terms of the acceptance of our DIA, then building out of the team to a build ready status is going to be critical for this year."

Key hires have included construction veterans from other recent mine builds in Chile. With the development timeline clarified, this team is now pivoting towards detailed engineering to prepare for a construction decision next year.

Project Development Timeline & Key Milestones

The next major milestone for Marimaca will be completion of the bankable feasibility study (DFS). This has been slightly delayed to incorporate information from the ICSARA process but remains on track for the first half of 2025.

With the study in hand and permitting receipts expected by year end, Marimaca aims to be in a position to reach a construction decision in early 2026:

"So we'll be moving that alongside the project progression for the balance of this year. Because as you say, if we get our RCA in hand by the end of this year, then we will be in a position to sanction the project in the first half of next year."

Production would then be expected approximately 2 years later, potentially in 2028. From an engineering standpoint, the project is relatively straightforward - an open-pit mine feeding a heap leach and SXEW plant producing copper cathode. The high-grade oxide ore and access to existing infrastructure are expected to enable an attractive, low-capex build.

Exploration & Growth Strategy

While the current focus is on moving the initial project to production, Marimaca has also been active in consolidating the surrounding district. The company sees significant potential to expand the resource base and grow production via its "hub and spoke" model:

"The vision for the district is really a hub and spoke type model with Marimaca anchoring what will be the production center. When we acquired Pampa Medina and Madrugador and consolidated that district in the second half of last year, we inherited some very nice near surface leachable high grade historical resources. And what the exploration has shown to date is that we think there is potential to significantly expand those resources."

Current budgets will allow for 10-15,000 meters of exploration drilling at Pampa Medina in the first quarter. Early results have been promising, and the program may be expanded. While the initial Marimaca operation remains the near-term priority, these regional deposits provide an attractive future growth pathway, utilizing cash flow from the core asset.

Market Positioning

With Marimaca now significantly de-risked from a permitting, engineering and financing perspective, the company is increasingly well positioned in a market with a dearth of near-term copper development projects. As Cookson points out, Marimaca stands out as one of the few projects capable of delivering copper production within the next 5 years.

The company believes this scarcity value is not yet fully appreciated by the market:

"What the market may be missing right now is that when you think about these acquisitions and consolidations that we've made like Pampa Medina, it really changes the picture for the future of Marimaca and what the district looks like."

With ongoing exploration success, Marimaca has the potential to grow into a world-class district. Yet this is all anchored by an initial project that is highly capital efficient and within reach for a company of Marimaca's size. As the global copper market dynamics and lack of near-term supply become more apparent in the years ahead, this strategic positioning should become increasingly attractive to investors.

Copper Market Dynamics & Future Outlook

Marimaca's development timeline appears exceptionally well-suited to capitalize on the looming market deficits in copper. Current supply growth is minimal, while demand is expected to surge due to the global energy transition and trends like electric vehicles and renewable power infrastructure.

As Cookson explains:

"The potential timing of our project is very good compared to where we see the supply and demand dynamics over the next 10 years. I think there are more projects that can be delivering copper on a 10 year timeframe than there are on a five year timeframe."

Few projects are positioned to deliver new copper supply by 2028, putting Marimaca among limited company from a strategic perspective. If the company can execute its straightforward oxide development as planned, it will be bringing new production online at an ideal time in the global market cycle.

The Investment Thesis for Marimaca Copper

• One of the few projects positioned to help meet looming copper supply gap in 2028-2030
• Fast-tracked, de-risked path to copper production in mining-friendly Chile
• Attractive, capital-efficient initial project anchoring a potentially world-class regional copper district
• Proven sustainable development approach aligned with leading ESG practices and community support
• Undervalued by the market today, with strategic scarcity value set to emerge as global deficits approach

With its Marimaca project already significantly de-risked and on a fast track to production, Marimaca Copper Corp appears exceptionally well-positioned for the coming era of copper shortages. The company has prudently advanced its initial oxide deposit in Chile through the key development milestones, with a straightforward path to first output by 2028, at the front end of the forecast supply gap.

Meanwhile, ongoing exploration success at surrounding deposits like Pampa Medina provides a compelling pathway for future production growth from this prospective district. Yet this potential upside does not appear to be fully appreciated by the market today, even as a dearth of near-term copper projects positions Marimaca as an increasingly strategic asset. For investors seeking exposure to an undervalued company poised to help fill the looming copper supply deficit, Marimaca warrants a closer look.

Macro Thematic Analysis

The investment case for Marimaca Copper is really a reflection of the broader structural supply deficit that is expected to emerge in the copper market by the late 2020s. Demand for copper is forecast to surge over the balance of the decade, driven by the global transition to clean energy and electrification. Copper is a critical metal for technologies like electric vehicles, renewable power infrastructure, and the grid upgrades needed to support them.

At the same time, the pipeline of new copper supply growth is at historically low levels. The copper price boom of the early 2010s led to a wave of new mine development, but the project pipeline was subsequently depleted during the bear market that followed. Environmental opposition, permitting challenges and fiscal uncertainty in key copper jurisdictions like Chile and Peru have impeded new projects. High operating cost inflation for inputs like energy and labor have also strained project economics, while the gradual decline in ore grades requires ever more infrastructure to maintain output levels.

As a result, the copper market is on course for a period of significant supply constraints and deficits by the second half of the 2020s, which is expected to necessitate much higher prices to incentivize new capacity. The industry is not investing in growth at the pace needed to meet looming demand. Companies like Marimaca that can successfully deliver new copper production during this window should be ideally positioned to capture this value for shareholders.