Marimaca Copper’s Receivable Risks and Financing Needs Could Shape Its Next Phase

Robust Capital Position Bolsters Near-Term Outlook

Marimaca Copper Corp., a base metals exploration and development company focused on northern Chile, has released its unaudited interim financial statements for the nine months ended September 30, 2025. The company reported a significant increase in working capital to $75.8 million, up from $22.7 million at the end of 2024. This improvement is largely attributable to successful private placements and capital raises completed during the period, including a notable A$80 million raise in September 2025.

These funds provide Marimaca Copper with a strong liquidity buffer to meet its operational and property option commitments over the next twelve months, underpinning the company’s ongoing development activities at its flagship Marimaca Project and other exploration assets in the Antofagasta region.

Managing Receivable Risks Amid Liquidation Proceedings

A key financial challenge remains the outstanding receivable of $4.6 million related to the 2022 sale of Minera Rayrock Ltda, now subject to a liquidation process after the buyer failed to meet payment obligations. The company has secured the receivable with pledges over the Ivan plant and mining tenements, and has recognized impairments totaling $3 million to reflect the uncertainty and delays in recovery.

Management continues to assess recoverability using probability-weighted scenarios that factor in liquidation outcomes and asset valuations. While the liquidation introduces uncertainty, the valuation of underlying assets currently exceeds the net receivable, providing some reassurance.

Exploration Assets and Future Commitments

Marimaca Copper holds 100% ownership of its core Marimaca Project concessions and maintains option agreements on additional properties such as Pampa Medina and Madrugador. These agreements include staged payments totaling $12 million each, with associated net smelter royalties and buy-back options. The company has confirmed no impairment indicators on its exploration and evaluation assets as of September 2025, signaling confidence in the long-term value of its portfolio.

Currency and Financial Risk Management

During the period, Marimaca Copper executed a foreign exchange swap to hedge currency risk associated with its Australian dollar capital raise. The swap, which matured in September 2025, resulted in a realized loss of $0.9 million. The company continues to monitor currency exposures, which remain modest relative to overall financial position, with cash predominantly held in U.S. dollars.

Interest rate risk is minimal given the nature of the company’s financial instruments, and liquidity risk is managed through careful cash flow forecasting and maintaining adequate cash reserves.

Shareholder Equity and Compensation

Marimaca Copper’s shareholder base was bolstered by significant private placements involving institutional investors such as Assore International Holdings and Ithaki Limited. The company also saw warrant exercises generating additional proceeds. Share-based compensation expenses increased notably in 2025, reflecting awards of restricted share units to management and directors, aligning incentives with shareholder value creation.

Looking ahead, the company acknowledges the need for continued financing beyond the next twelve months to advance its projects, with no guarantees on future funding terms.