Marimaca Copper Expands Chilean Footprint with Strategic Acquisition

• Marimaca Copper is developing the Marimaca Oxide Project in Northern Chile, currently in the DFS and permitting stage.
• The company has acquired a new asset, Pampa Medina, which complements their existing resource base.
• Pampa Medina offers high-grade leachable resources that could potentially increase production scale or extend mine life.
• The acquisition opens up interest from larger mining companies and strategic partners.
• Marimaca Copper remains focused on their original project while exploring growth opportunities.

Marimaca Copper (TSX-V: MARI) is emerging as a compelling investment opportunity in the copper mining sector, with its flagship Marimaca Oxide Project in Northern Chile and a recent strategic acquisition that could significantly enhance its production profile. As global demand for copper continues to rise, driven by renewable energy and electric vehicle adoption, Marimaca is positioning itself to capitalize on this trend with a low-risk, high-potential project pipeline.

The Marimaca Oxide Project: A Cornerstone Asset

At the heart of Marimaca Copper's portfolio is the Marimaca Oxide Project, an advanced-stage development asset located in northern Chile. The project is currently progressing through its Definitive Feasibility Study (DFS) and permitting stages, with the company focused on bringing this high-quality asset into production.

Hayden Locke, President and CEO of Marimaca Copper, emphasizes the project's unique characteristics:

"The Marimaca Oxide project is still the best project that we own and it's still our number one priority. This is an amazing little add-on that just improves the quality of it."

The Marimaca Oxide Project stands out for several reasons:

• Low Capital Costs: In an industry where mega-projects often require billions in upfront investment, Marimaca's relatively modest capital requirements make it more feasible to finance and develop.
• Low Execution Risk: The project's straightforward nature and the company's experienced management team contribute to a lower risk profile compared to more complex mining operations.
• Favorable Permitting Environment: Chile's established mining industry and clear regulatory framework provide a supportive backdrop for project development.
• Operational Efficiency: The oxide nature of the deposit allows for simpler processing methods, potentially leading to lower operating costs.

Interview with President & CEO, Hayden Locke

Strategic Acquisition: Pampa Medina

In a move that has caught the attention of industry observers, Marimaca Copper recently announced the acquisition of the Pampa Medina property. This strategic addition could significantly enhance the company's resource base and production potential.Key aspects of the Pampa Medina acquisition include:

• High-Grade Resources: The newly acquired property boasts higher-grade mineralization compared to the average grade at Marimaca, potentially boosting the overall project economics.
• Complementary Asset: Pampa Medina's resources are leachable and oxide in nature, aligning well with Marimaca's existing processing plans.
• Exploration Upside: The acquisition includes 41,000 meters of core samples, providing Marimaca with valuable data to potentially expand the resource base.
• Flexible Development Options: The additional resources from Pampa Medina open up possibilities for either increased production scale or extended mine life.

Locke explains the potential impact:

"We have the potential to either increase our scale quite significantly. If you look at the acid solubilities of the historical resource and the amount of contained copper, it's somewhere around 300,000 tons of contained copper across those two mineral classes. Recoverable copper north of 200,000 based on the acid solubilities."

Production Scenarios & Strategic Flexibility

The integration of Pampa Medina into Marimaca's portfolio creates exciting opportunities for the company's production profile. Management is currently evaluating two primary scenarios:

• Increased Production Scale: By incorporating Pampa Medina's resources, Marimaca could potentially boost its annual copper production from the targeted 50,000 tons to approximately 70,000 tons.
• Extended Mine Life: Alternatively, the company could maintain its initial production rate but significantly extend the overall mine life to more than 20 years.

This flexibility allows Marimaca to optimize its development plans based on market conditions and strategic priorities. The company is taking a measured approach, pausing the DFS briefly to fully assess the best path forward.

Attracting Strategic Interest

The Pampa Medina acquisition has not only enhanced Marimaca's resource base but also positioned the company to attract attention from larger industry players. Locke notes:

"It definitely changes our interest levels from the super majors because we start to become far more meaningful."

While the largest mining companies typically seek projects with annual production exceeding 70,000 tons for 20+ years, Marimaca's enhanced profile now makes it an attractive target for mid-tier producers. Companies like Teck Resources, Vale, and South32 could view Marimaca as a strategic fit for their portfolios.

However, Locke emphasizes that the enhanced project scope makes the management team "less inclined to sell," as they see significant value in developing the assets themselves.

Exploration Upside

Beyond the Marimaca Oxide Project and Pampa Medina, the company continues to pursue exploration opportunities within its land package. Ongoing drilling at the Mercedes target aims to identify additional shallow oxide mineralization, which could further supplement the resource base.

This multi-pronged approach to growth – developing the flagship project, integrating strategic acquisitions, and continuing exploration – demonstrates Marimaca's commitment to creating long-term value for shareholders.

Market Dynamics & Copper Outlook

The global copper market is experiencing renewed interest, driven by strong fundamentals and increasing demand from green energy technologies. Recent price movements and industry conferences have highlighted the growing appetite for copper assets among major mining companies and investors alike.

Marimaca's timing appears opportune, with Locke noting:

"We were at the RBC Junior Copper Developers Conference, which was really interesting. One of the panelists who I think comes on your show quite a bit, the CEO of Hot Chili made a comment that I think was 60% of the potential new supply was sitting in that room."

This observation underscores the scarcity of quality copper development projects, particularly those that can be brought into production in the near to medium term. Marimaca's advanced-stage project and recent acquisition position it favorably within this landscape.

Financing Advantage

A crucial differentiator for Marimaca is its ability to potentially self-finance its development plans. Unlike many of its peers in the junior copper space, Marimaca does not necessarily require a major partner to bring its project to fruition. Locke emphasizes this point:

"For us, it doesn't make any difference. We don't need any of those to finance and potentially Hot Chili is in a similar boat to us, but I'd say other than the two of us, the rest are very much needing to find that major partner to come in and de-risk their financing."

This financial flexibility provides Marimaca with strategic optionality and potentially allows it to capture a larger share of the project's value for shareholders.

Near-Term Catalysts

Investors can look forward to several potential catalysts in the coming months:

• Ongoing Drill Results: The company will be releasing drill results from its exploration programs throughout the remainder of the year.
• Updated Resource Estimate: A 43-101 compliant resource estimate for the Pampa Medina property is expected, providing clarity on the acquisition's impact.
• Potential Preliminary Economic Assessment (PEA): Management is considering a standalone PEA for Pampa Medina to quantify its economic potential.
• Definitive Feasibility Study: The completion of the DFS for the Marimaca Oxide Project will be a significant milestone, potentially leading to a construction decision.

The Investment Thesis for Marimaca Copper

• High-quality, advanced-stage copper oxide project in mining-friendly Chile
• Recent strategic acquisition (Pampa Medina) enhances resource base and production potential
• Flexibility to increase production scale (up to 70,000 tons/year) or extend mine life (20+ years)
• Low capital and operating costs relative to peers
• Potential for self-financing, reducing dilution risk
• Ongoing exploration upside within land package
• Exposure to bullish copper market driven by green energy transition
• Experienced management team with track record of creating shareholder value
• Multiple near-term catalysts including drill results, resource updates, and economic studies

Marimaca Copper stands out as a compelling investment opportunity in the copper sector, offering exposure to a high-quality development project with significant growth potential. The company's recent acquisition of Pampa Medina has enhanced its resource base and opened up possibilities for increased production or extended mine life. With a low-risk profile, potential for self-financing, and a favorable position in the bullish copper market, Marimaca is well-positioned to create value for shareholders. Investors should closely monitor upcoming catalysts, including drill results, resource updates, and economic studies, which could drive further appreciation in the company's value. As the global demand for copper continues to rise, driven by the green energy transition, Marimaca Copper represents an attractive way to gain exposure to this critical metal.

Macro Thematic Analysis

The global copper market is poised for significant growth in the coming decades, driven by several powerful macro trends. The most prominent of these is the global transition to renewable energy and electric vehicles, both of which require substantial amounts of copper. Solar panels, wind turbines, and the infrastructure needed to support them all rely heavily on copper for their efficiency and conductivity. Similarly, electric vehicles use up to four times as much copper as traditional internal combustion engine vehicles.

This surge in demand comes at a time when the supply side of the copper market is facing challenges. Many of the world's largest copper mines are aging, with declining grades and increasing production costs. New projects are becoming increasingly scarce, and those that do exist often face significant hurdles in terms of permitting, capital requirements, and technical complexity.

The combination of rising demand and constrained supply has led many industry analysts to predict a significant copper deficit in the coming years. This supply-demand imbalance is expected to support higher copper prices, potentially creating a favorable environment for companies like Marimaca Copper that are bringing new projects online.

Furthermore, the geopolitical landscape is shifting, with many countries prioritizing secure supply chains for critical minerals like copper. Chile, where Marimaca's projects are located, is a stable mining jurisdiction with a long history of copper production, potentially making it an attractive source for copper consumers looking to diversify their supply.