Marimaca Copper Positions for Near-Term Production with Closing of Mitsubishi Investment

Marimaca Copper Corp (TSX: MARI) is advancing its flagship Marimaca copper project in Chile's Antofagasta region. The company recently closed a strategic C$20 million investment from Mitsubishi Corporation, a major player in Chile’s copper industry, providing a significant vote of confidence in Marimaca's potential to be a near-term copper producer.

With copper demand expected to surge amid the global energy transition, Marimaca offers investors exposure to a quality development asset with backing from a respected partner in Mitsubishi.

About Marimaca Copper

Marimaca Copper is a Canadian exploration and development company focused solely on the Marimaca project. Discovered in 2016, the Marimaca deposit is an oxide, open-pit, heap leach asset well-suited to low-cost operations.

The project exhibits exceptional metallurgy, with recoveries over 90% in column leach tests. Marimaca also benefits from nearby infrastructure, located just 14km from the major port city of Antofagasta.

With a seasoned management team and board, including veterans from majors like Rio Tinto and BHP, Marimaca has systematically advanced Marimaca over the past six years. The company’s phased exploration approach has steadily grown resources while reducing risk.

Marimaca’s Location Provides Key Advantages

Chile's Antofagasta region is a mining-friendly jurisdiction with a long history of copper production. The Marimaca project enjoys ready access to water, power, transportation and human capital.

Marimaca is situated in the iron oxide copper gold belt, a geological zone known for major deposits like Spence and Centenario. Neighbouring operations provide opportunities for infrastructure sharing and operational synergies. For example, Marimaca has already secured a port agreement with Antofagasta Minerals.

The project's desert location also confers sustainability benefits, given the abundance of solar power and seawater for processing. Marimaca has the potential to be one of the lowest carbon copper mines globally.

Resource Growth and Exploration Upside

Marimaca has seen exceptional resource growth over the past two years through systematic exploration. The project's maiden mineral resource estimate in mid-2020 outlined 70 million tonnes in the measured and indicated category.

Following an infill drilling campaign, Marimaca tripled measured and indicated resources to over 200 million tonnes as of February 2022. The deposit remains open along strike and at depth, with clear potential for further growth.

In addition to expanding the main Marimaca oxide deposit, the company has been testing district targets across its 6,000-hectare land package. Encouraging results at the Mercedes and Cindy targets highlight the potential for satellite deposits that could feed a central Marimaca processing hub.

Mitsubishi Deal Validates Marimaca’s Potential

In July 2023, Marimaca closed a C$20 million strategic investment from Mitsubishi Corporation, one of Japan's largest integrated trading and investment firms. Mitsubishi acquired a 5% stake in Marimaca and has an option to increase its interest to 9.5% in the future.

The investment represents a significant endorsement from a major player in Chile’s copper sector. Mitsubishi already holds stakes in tier-one assets like Escondida, Los Pelambres and Los Bronces.

Per Marimaca’s CEO Hayden Locke, Mitsubishi's due diligence process was extensive, underscoring their conviction in the project. The deal marks a shift in strategy for Mitsubishi as it recognizes a need to secure future copper supply amid constrained development pipelines globally.

Advancing Towards Production

Buoyed by the Mitsubishi investment, Marimaca is advancing Marimaca expeditiously towards a construction decision. The company aims to submit environmental permits in late 2023 and complete a definitive feasibility study in mid-2024.

The feasibility study will provide crucial economic parameters and engineering design needed to finance construction. Marimaca is targeting the start of mine development in early 2025, relatively quick for a mining project.

Permitting and project optimization work is proceeding in parallel across several fronts:

• Metallurgical testing to confirm leach characteristics and maximize recoveries
• Geotechnical drilling for pit design and mine planning
• Water supply assessment and environmental baseline studies
• Preliminary engineering studies focused on layout, waste rock handling, and other factors

Financing Discussions Ramping Up

In tandem with the technical workstreams, Marimaca has commenced financing discussions with banks and export credit agencies. The company can leverage its relationship with Mitsubishi to access low-cost debt from Japanese institutions.

Marimaca can also pursue other attractive financing through agencies in the US, Europe and Canada. The company aims to have all the necessary debt and equity financing lined up when permits are granted.

Major Expansion Opportunity in Copper Market

Marimaca is well-positioned to benefit from a pending supply shortfall in the copper market over the next decade. With demand surging from electrification and renewables, most forecasts predict a multi-million tonne deficit emerging mid-decade absent new production.

As major copper provinces like Chile face declining grades, water constraints and social license issues, new projects are challenged to get built. Marimaca offers a rare opportunity to bring on a sizeable new source of supply in a premier copper jurisdiction.

The strategic investment from Mitsubishi highlights Marimaca as one of the few quality assets that can help fill the looming copper supply gap. As CEO Hayden Locke stated, "the phone's going to be ringing off the hook" with bankers vying to finance Marimaca.

Conclusion

With its permitting process imminent and feasibility study on the horizon, Marimaca Copper provides a compelling opportunity for investors seeking exposure to new copper production.

Marimaca exhibits many attributes that should engender confidence – exceptional location, solid metallurgy and processing, strong economics and manageable CapEx. The backing of Mitsubishi further derisks the project and its path to production.

As Marimaca approaches its definitive feasibility and financing arrangements, investors have an attractive entry point for a quality copper asset poised to help meet surging demand. Those bullish on copper's outlook should take a hard look at Marimaca Copper.