Marimaca Copper Targets 2026 Construction Start After Securing Permits & $80M Financing

• Marimaca Copper completed its Definitive Feasibility Study in 2025 showing industry-leading capital costs (sub-$600M USD) and secured environmental approval, positioning for construction start in 2026
• Raised C$80M in oversubscribed financing from Australian and US investors, providing comfortable cash position without near-term equity dilution concerns
• Pampa Medina exploration showing consistent mineralization across 20+ drill holes over 3km x 1.5km area, potentially containing multiple million tons of copper with pathway to expand production from 50,000 to 75,000 tons annually
• Targeting build-ready status by end of 2026, prioritising operational simplicity over engineering elegance and implementing rigorous risk management systems to avoid cost overruns
• Two-pronged approach with near-term Marimaca oxide development (50,000 tpa) and medium-term Pampa Medina oxide expansion, while advancing longer-term sulfide resource potential

Marimaca Copper (TSX:MARI) enters 2026 having achieved critical milestones that position the company for a transformational year ahead. With copper prices strengthening significantly and the company's flagship Marimaca oxide project now permitted and fully feasibility-studied, CEO Hayden Locke outlined how the company plans to navigate the transition from explorer to developer while maintaining capital discipline and advancing a potentially tier-one discovery at Pampa Medina.

2025 Achievements: De-Risking the Development Path

The company accomplished three major objectives in 2025 that fundamentally changed its risk profile. First, Marimaca delivered its Definitive Feasibility Study (DFS) for the oxide deposit, which validated the project's exceptional economics. Locke noted the study 

"Industry-leading capital costs, very competitive operating cost, industry-leading return on invested capital metrics." 

The DFS was conservatively modeled at $4.30 per pound copper, though current market prices ($6) have moved significantly higher.

Second, the company secured environmental approval, representing a critical permitting milestone. This achievement positions Marimaca to commence construction during 2026, an ambitious but achievable timeline according to management. The environmental permit removes a significant development risk that often delays mining projects.

Third, the company made what Locke describes as a potential tier-one copper discovery at Pampa Medina, meaning "multiple million tons of contained copper." This discovery underpins the company's growth strategy, with management now confident it can deliver, "at least an additional 25,000 tons of copper per annum to our base case of 50,000 tons per annum."

Strong Financial Position

Marimaca raised $80 million Canadian in 2025 from Australian and US investors, with the financing massively oversubscribed. Locke acknowledged the irony that "if we had gone out to raise more money, it probably would have been a better outcome for the company," but emphasised the company is "very comfortable with our cash position" and doesn't need to consider raising money in the short to medium term.

This financial cushion allows management to focus on detailed engineering work and team building without immediate capital constraints. As the company approaches construction, financing for the build will be pursued throughout 2026, with management aiming for "the least dilutive financing structure for our current shareholders."

Technical Parameters & Capital Discipline

The Marimaca oxide project features pre-production capital costs of just under $600 million USD. Locke indicated there are "some opportunities where we can reduce that" which will be "offset by some areas where we need to increase capital costs," suggesting management is comfortable delivering the project at or below the DFS estimate in the current market environment.

The project benefits from relatively straightforward geology, a simple open pit with relatively good metallurgy. Importantly, the equipment and input costs are "very prevalent in the Chilean mining industry," allowing the company to benchmark against actual costs from operating local mines. This provides greater confidence in operating assumptions, though Locke acknowledged there will be "some variability as we get into the operational phase."

Interview with President & CEO, Hayden Locke

Balanced Development Philosophy

A significant portion of the discussion centered on Marimaca's development philosophy, which prioritises operational simplicity over engineering elegance. Locke explained the concept clearly: 

"Engineers have this amazing ability to engineer the most perfect project that you can ever possibly see. But it can be a beautifully designed architecturally brilliant house which is just not functional."

The company is focused on operability in decision-making, willing to sacrifice some capital savings if cost reductions materially increase operational risk. Locke provided a practical example: cutting a redundant pump to save $2-3 million could be "disastrous" if a breakdown shuts down the processing plant. "That's the kind of decision that we don't want our teams to make without considering what happens in this eventuality."

This measured approach reflects management's awareness as a first-time builder. Rather than rushing to production, the company will spend 2026 increasing engineering maturity to minimise variations during execution. Locke stated, 

"We will take the course of 2026 to get ourselves to a level of engineering that we're comfortable with, targeting build-ready status by year-end, plus or minus three months.”

Pampa Medina: Discovery to Production

The Pampa Medina discovery represents significant upside potential. The company acquired the project at the end of 2024, recognising that previous operators had incorrectly logged drill cores as hosted in volcanics rather than sediments. This reinterpretation suggested the mineralization might be similar to larger sediment-hosted deposits like Caserones.

The exploration thesis has been validated remarkably. Locke emphasised that 

"Every single drill hole has hit the sedimentary horizon and in every single drill hole it has been mineralised in both oxides and sulfides." 

Over 20 drill holes have confirmed this, representing "a pretty amazing hit ratio when it comes to exploration." The mineralised area now covers approximately 3 kilometers by 1.5 kilometers, requiring an estimated 200,000 to 300,000 meters of drilling to properly infill over several years.

Pampa Medina has two components in the development strategy. The oxide portion is "already a core part of our short to medium-term strategy," offering an opportunity to expand cathode production from 50,000 to 70-75,000 tons annually. The broader sulfide project has a longer gestation period but is "incredibly strategic" for the company, though it will naturally be "several years behind" the main Marimaca oxide development.

Risk Management Through Organizational Culture

Locke addressed organizational challenges in project execution, particularly the cultural tendency in Chile where people "typically don't like to deliver bad news upwards." The company is actively creating a culture where "you don't get in trouble for delivering bad news. You will be in much worse trouble if you don't deliver bad news."

Beyond culture, Marimaca is implementing robust systems and processes for monitoring project execution. The goal is an early warning system providing daily reports on progress, spending, and budget variances. Locke wants the ability to review these metrics daily "so that we can identify if anything is drifting off course as soon as it is drifting off course because it's much easier to make changes if you catch them early."

This preparation time is critical because the company currently isn't ready to manage operations when spending "$20-25 million a month on building this project." Taking additional time in 2026 to prepare these systems reduces execution risk significantly.

Market Context Favoring Strategic Positioning

With copper markets strengthening and Marimaca now valued at approximately $1.4 billion, the company finds itself in an enviable position. While peers face permitting challenges or less advanced studies, Marimaca has cleared major hurdles. However, Locke resists pressure to rush, stating:

"We would love to be in production and producing cash flow as soon as possible because it's obviously the best economic outcome for our shareholders, but we're going to resist the temptation to just jump head first into this."

The company benefits from having both a near-term development story and an exploration growth story. This dual narrative allows Marimaca to maintain investor interest during the "slow and steady development of this project" while management focuses on "delivering this and getting it right the first time rather than rushing it."

Marimaca Copper has systematically de-risked its flagship project while discovering significant exploration upside. The company's disciplined approach to development, emphasis on operational robustness, and focus on capital efficiency positions it well to execute on its 2026 objectives. With strong financial backing, environmental permits secured, and a validated feasibility study, Marimaca is transitioning from explorer to developer in a favorable copper market environment. Management's willingness to prioritise execution quality over speed, while potentially frustrating to some investors, demonstrates the kind of capital discipline that reduces the risk of cost overruns that have plagued other first-time mine builders.

The Investment Thesis for Marimaca Copper

• De-risked Development Asset: DFS completed with industry-leading capital intensity (sub-$600M USD), environmental permits secured, and pathway to construction start in 2026 removing major technical and regulatory risks
• Superior Project Economics: Industry-leading return on invested capital metrics, competitive operating costs, and simple open-pit design with well-understood metallurgy leveraging Chile's established mining infrastructure
• Strong Financial Position: $80M CAD raised in oversubscribed financing provides runway through detailed engineering phase without near-term dilution risk; management focused on shareholder-friendly project financing structure
• Tier-One Discovery Potential: Pampa Medina showing consistent mineralization across 3km x 1.5km area with potential for multiple million tons of contained copper, offering significant exploration upside alongside development story
• Production Growth Pathway: Clear strategy to grow from 50,000 tpa base case to 70-75,000 tpa through Pampa Medina oxide expansion, with longer-term sulfide resource providing additional upside optionality
• Disciplined Management Team: First-time builder acknowledging risks and prioritising operational simplicity, capital discipline, and robust risk management systems over rushing to production reducing execution risk
• Favorable Copper Market Timing: Development timeline aligned with structural copper deficit driven by electrification and energy transition, with current prices significantly above DFS assumptions ($4.30/lb)
• Chilean Mining Jurisdiction Advantage: Established mining region with available skilled labor, reliable equipment supply chains, and transparent cost benchmarking from operating local mines

The copper market is entering a period of structural tightness as global electrification accelerates while new supply struggles to keep pace. Electric vehicles require 2-3 times more copper than internal combustion vehicles, while renewable energy infrastructure and grid expansion create unprecedented demand. Simultaneously, declining ore grades, permitting challenges, and underinvestment in new mines have constrained supply growth. Marimaca's disciplined development approach positions it to bring new production online during this deficit period. The company's flagship project was conservatively modeled at $4.30 per pound, yet current prices have moved significantly higher, illustrating the favorable market backdrop. As Locke noted when congratulated on the company's strong valuation: "Congratulate the copper price" acknowledging that broader market dynamics are creating a rising tide for well-positioned copper developers with permitted, feasibility-studied projects ready for construction.

TL;DR:

Marimaca Copper has systematically de-risked its flagship oxide project through DFS completion, environmental permitting, and $80M in oversubscribed financing, positioning for construction to start in 2026. The company combines a near-term development story (50,000 tpa cathode production at sub-$600M capex) with significant exploration upside at Pampa Medina, where consistent drill results across a 3km x 1.5km area suggest tier-one discovery potential. Management's disciplined approach prioritises operational simplicity and capital efficiency over speed, targeting build-ready status by late 2026 while copper market fundamentals strengthen significantly above conservative DFS assumptions.

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