Marimaca Copper Secures A$80M to Advance Chilean Projects
Marimaca Copper has successfully closed an A$80 million placement to accelerate exploration and development at its flagship Chilean copper assets, pending final TSX approval.
- Raised A$80 million via placement of 8.25 million CDIs at A$9.70 each
- Funds earmarked for Pampa Medina exploration and Marimaca Oxide Deposit engineering
- Existing insiders Assore International Holdings and Ithaki Ltd. participated
- Placement managed by Euroz Hartleys, Beacon Securities, Macquarie Capital, and Canaccord Genuity
- Subject to final approval from the Toronto Stock Exchange
Capital Raise Closes Successfully
Marimaca Copper Corp., a copper exploration and development company focused on its Chilean assets, has announced the closing of a significant A$80 million placement. The company issued over 8.2 million Chess Depositary Interests (CDIs) at a price of A$9.70 each, raising gross proceeds of approximately A$80 million (C$72 million). This capital injection marks a pivotal step in funding the next phase of exploration and project development.
Strategic Use of Proceeds
The net proceeds from this placement are earmarked for advancing exploration at the Pampa Medina Project and the Marimaca sulphide target, alongside detailed design and engineering workstreams at the Marimaca Oxide Deposit (MOD). These initiatives are critical to progressing the company’s flagship copper project located in Chile’s Antofagasta Region, an area known for its rich mineral deposits. Additionally, funds will support general corporate purposes, providing operational flexibility.
Insider Participation and Market Confidence
Notably, existing insiders including Assore International Holdings Limited and Ithaki Ltd. participated in the placement, subscribing for over 2.6 million CDIs combined. This insider involvement often signals confidence in the company’s strategic direction and project potential. Mitsubishi Corporation, which holds a 4.4% stake, retains a pro rata participation right exercisable within 30 business days, underscoring continued institutional interest.
Regulatory and Market Considerations
The placement was brokered by a consortium of respected financial institutions including Euroz Hartleys Limited, Beacon Securities Limited, Macquarie Capital (Australia) Limited, and Canaccord Genuity (Australia) Limited. While the placement has closed, it remains subject to final approval from the Toronto Stock Exchange (TSX), a standard regulatory step that investors will watch closely. The company has also clarified that the securities are not registered for sale in the United States, limiting distribution to certain jurisdictions.
Looking Ahead
Marimaca Copper is concurrently advancing a Definitive Feasibility Study for the MOD, led by Ausenco Chile Ltda, while exploring its extensive land holdings including the Sierra de Medina property block. This capital raise provides the financial runway to accelerate these efforts, potentially unlocking significant value as the projects mature. However, the company cautions that actual use of proceeds may evolve based on operational priorities and market conditions.
Bottom Line?
Marimaca’s fresh capital boost sets the stage for critical project milestones, but TSX approval and execution risks remain key watchpoints.
Questions in the middle?
- When will the TSX grant final approval for the placement?
- How will Mitsubishi Corporation respond to its participation rights?
- What are the timelines for exploration results from Pampa Medina and the sulphide target?
