Mitsubishi Bets Big on Marimaca Copper's Growth Potential

• Marimaca Copper has developed the Marimaca oxide copper project in Chile with partner Mitsubishi Corporation.
• Marimaca has focused on exploration, achieving scale, and technical de-risking like drilling to upgrade resource confidence. This was key to get risk-averse Mitsubishi on board.
• Mitsubishi took a 5% stake in Marimaca with an option to increase to 9.5% by investing another $26 million. They get board seats and technical rights but Marimaca retains flexibility.
• Marimaca is meeting with gold producers at the Denver Gold Forum who want copper exposure. Strategic partnerships could bring exploration dollars.
• Marimaca is now focused on permitting, feasibility study, and bringing the Marimaca project into production, with an eye to further exploration enabled by partnerships.

About Marimaca Copper

Marimaca Copper is a Chilean copper development company focused on the Marimaca oxide copper project located in the Antofagasta region of Northern Chile. The company is led by President Hayden Locke and recently partnered with Mitsubishi Corporation which acquired a 5% stake in the company. Marimaca has significantly de-risked the project over the past few years through extensive drilling and technical studies. The company is now moving into permitting and feasibility studies ahead of a potential mine construction decision. Beyond Marimaca, Marimaca Copper holds a significant land package with substantial exploration potential for new discoveries.

Interview with Hayden Locke, President & CEO of Marimaca Copper Corp.

Strategic Partnership with Mitsubishi

In a major vote of confidence, Marimaca Copper secured Mitsubishi Corporation as a strategic partner in 2022. Mitsubishi initially invested for a 5% stake in the company and has an option to increase its stake to 9.5% with an additional investment. The partnership provides Marimaca with a strong, cash-rich partner to help advance the Marimaca project.

For Mitsubishi, Marimaca represents an opportunity to add new copper production as some of its existing mines face declining output in the coming years. Mitsubishi has also stated a goal of investing up to $20 billion in decarbonization and metals for the energy transition, with copper being critically important. The Marimaca project offers the potential for Mitsubishi to add new copper supply within a short timeframe.

The partnership structure allows Marimaca to retain flexibility. Mitsubishi receives two board seats but Marimaca avoids giving away too much control or upside potential at this early stage.

Advancing the Flagship Marimaca Project

Over the past three years since Hayden Locke joined as President, Marimaca has successfully increased the scale of the Marimaca deposit to be one of the most significant new oxide copper discoveries. The company has also significantly de-risked the project through extensive drilling, metallurgical test work, internal trade-off studies, and permitting activities.

Marimaca is now moving into the definitive feasibility study (DFS) and final permitting needed ahead of a potential construction decision in 2024. The company is currently evaluating leading engineering firms to conduct the DFS and expects to finalize a decision soon. An experienced study team with relevant project credentials will be crucial to delivering a high-quality DFS that provides confidence in the economic viability of the project.

Longer Term Growth Potential

Beyond Marimaca, Marimaca Copper controls extensive additional exploration ground in Chile's copper belts. While the near-term focus remains on Marimaca, the company sees substantial opportunity for new discoveries that could feed a future pipeline of projects.

Marimaca is considering spinning out these earlier-stage exploration assets into a separate company ("Spinco"). This would allow for exploration funding without diluting shareholders of the main Marimaca Copper company focused on Marimaca. There is strategic interest from major mining companies looking at opportunities to invest in copper exploration. However, Marimaca will be patient and disciplined in securing partners on the right terms.

Conclusion

With its strategic partnership with Mitsubishi, experienced management team, and advanced stage flagship project, Marimaca Copper presents an attractive investment opportunity in the copper developer space. The company offers exposure to a growing copper project in a premier mining jurisdiction, with the potential for new discoveries on its regional land package. The strategic backing of Mitsubishi provides further validation.

As Marimaca Copper continues to de-risk Marimaca through feasibility studies and permitting over the next 12-18 months, the company appears well positioned to create significant value for shareholders. The project has low technical complexity given its oxide mineralization, and Marimaca is engaging experienced teams to deliver a high-quality study. With major miners competing for new copper resources, Marimaca's strategic location and scale could attract takeover interest as it moves closer to production. Investors with a bullish copper thesis should keep a close eye on this emerging producer.