Marimaca Copper Expands Footprint with Strategic Madrugador Acquisition in Chile's Copper Belt

• Marimaca signs binding option agreement to acquire the 855-hectare Madrugador project
• Historical resource estimate indicates 12.2Mt measured and indicated at 0.68% CuT and 0.47% CuS
• Property located adjacent to recently acquired Pampa Medina project, consolidating southern Sierra de Medina district
• Total consideration of US$12 million over 5 years with a 1.5% NSR royalty
• Located 26km from planned processing infrastructure with potential for operational synergies

About Marimaca Copper

Marimaca Copper Corp. (TSX: MARI) is an emerging copper developer focused on creating a new copper mining district in Chile's Antofagasta Region. The company's flagship Marimaca Oxide Deposit (MOD) is currently undergoing a Definitive Feasibility Study, while the company actively explores and consolidates its position in the Sierra de Medina (SdM) district, demonstrating its commitment to building a significant copper production hub in one of the world's premier mining jurisdictions.

Strategic Expansion Through Madrugador Acquisition

In a significant move to strengthen its position in Chile's coastal copper belt, Marimaca Copper has announced the signing of a binding option agreement to acquire the Madrugador project. The acquisition represents a strategic expansion of the company's footprint, adding 855 hectares of highly prospective ground immediately adjacent to its recently acquired Pampa Medina project.

Historical Resources & Development Potential

The Madrugador project comes with a historical NI 43-101 non-compliant resource estimate that highlights its significant potential. The historical estimate indicates measured and indicated resources of 12.2 million tonnes grading 0.68% total copper (CuT) and 0.47% soluble copper (CuS), with an additional 1.4 million tonnes of inferred resources at 0.58% CuT and 0.33% CuS. While these figures require validation and upgrading to current standards, they suggest substantial potential for near-term resource growth.

Location & Infrastructure Advantages

Strategically positioned approximately 26 kilometers from Marimaca's planned processing infrastructure and at an elevation approximately 200 meters higher, the Madrugador project presents compelling operational synergies. The property's location within the eastern domain of the Antofagasta Region's coastal copper belt places it in a prolific mining district that hosts several significant 'Manto'-style copper deposits, including Capstone Copper's Mantos Blancos mine and Antofagasta Minerals' Cachorro project.

Geological Characteristics & Exploration Potential

The project area exhibits favorable geological characteristics, with observable shallow volcanic-hosted manto-style copper oxide mineralization near surface. Historical drilling and reports indicate the presence of copper oxide and mixed oxide-sulphide mineralization in both volcanic and underlying sedimentary units. With over 36,376 meters of historical drilling data available for review, Marimaca has a substantial geological database to leverage for future exploration activities.

Transaction Structure & Terms

The acquisition terms reflect a structured approach to managing capital commitments while maintaining operational flexibility. The agreement spans five years with graduated payments totaling US$12 million, starting with US$150,000 upon signing and culminating in a US$7 million payment in the final year. A 1.5% royalty on net gross sales is retained by the sellers, with Marimaca holding the option to buy back 1.0% of the NSR for US$1.5 million and maintaining a right of first refusal on any potential sale of the royalty.

Validation & Development Strategy

Marimaca has initiated a comprehensive validation program to verify and upgrade the historical resource estimate. This includes geological relogging of available historical diamond drilling data, validation of drill collar GPS coordinates, topography, and surveys, and a complete reinterpretation of the geological model. The company's approach suggests a methodical path toward establishing a current resource estimate that meets modern standards.

Integration with Existing Operations

The acquisition fits well within Marimaca's broader development strategy for the MOD. The company envisions utilizing future MOD infrastructure, particularly water management systems, potential pipeline routes, and SX-EW facility capacity, to create operational efficiencies and enable modular expansion capabilities at lower incremental capital costs.

The Investment Thesis for Marimaca Copper

• Strategic District Control: Consolidation of the southern Sierra de Medina district creates a dominant land position in a proven copper belt
• Resource Growth Potential: Historical resources and extensive drilling database provide a foundation for near-term resource expansion
• Infrastructure Advantage: Proximity to planned MOD processing facilities enables operational synergies and cost efficiencies
• Flexible Development Options: Structured acquisition terms and modular development approach provide capital deployment flexibility
• Strong Jurisdiction: Located in Chile's premier copper mining region with established infrastructure and mining expertise
• Management Track Record: Demonstrated ability to identify and acquire strategic assets while advancing core project development
• Near-term Catalysts: Multiple value drivers including resource validation, exploration results, and MOD feasibility study completion

The Madrugador acquisition represents a significant step in Marimaca Copper's strategy to build a major copper production hub in Chile's Antofagasta Region. By consolidating its position in the Sierra de Medina district, the company has secured additional resource potential that could complement its flagship MOD project. The transaction's structured terms provide financial flexibility while maintaining operational control, and the property's location offers compelling synergies with planned infrastructure. With multiple catalysts on the horizon, including resource validation, exploration results, and advancement of the MOD feasibility study, Marimaca continues to strengthen its position as an emerging copper developer in one of the world's premier mining jurisdictions. The company's methodical approach to growth and development, combined with its strategic asset base, positions it well to capitalize on the growing global demand for copper.