Marimaca Copper Corp. (“Marimaca Copper” or the “Company”)
(TSX: MARI) is pleased to announce that, in line with its
cost reduction initiatives, which were implemented as a result of
the unprecedented impact of the Coronavirus pandemic, the Company
has negotiated the extension of several of its upcoming option
payments on properties comprising the Marimaca Copper Project
(“Marimaca” or “the Project”).
The extension of the payment deadlines reduces
the total option payments due between May 2020 and February 2021
from US$9.2 million (including US$4.45 million in FY2020) to just
over US$2 million over this period. These reductions mean that
Marimaca Copper has sufficient undrawn capacity under its working
capital facility (“WCF”), which has been provided by its major
shareholders Greenstone Resources II LP (“Greenstone”) and Tembo
Capital Mining Fund II LP (“Tembo”) (refer announcement on
19 March 2020), to complete all currently planned work
programmes in 2020.
Michael Haworth, Executive Chairman of
Marimaca Copper commented:
“When it became clear that the pandemic was
going to have a potentially significant impact on our ongoing
operations and our ability to raise equity capital at a valuation
reflective of the inherent value of Marimaca, we were quick to
implement a number of cost cutting initiatives to preserve our
vital cash position. One of the key aspects was seeking an
extension on several option payments, relating to the acquisitions
of some of the claims comprising the Marimaca property, which were
to fall due during 2020 or early 2021.
“The extension of these payments frees up
valuable cash for value adding activities for the Company including
the completion of district scale geophysical programmes which we
hope will help us identify targets which could replicate the
exploration success we have had at Marimaca.
“We would like to extend our thanks to our
partners for their willingness to extend these option payment
deadlines in what are exceptional circumstances and to support the
continued success of Marimaca Copper.
“We continue to believe Marimaca represents an
initial discovery in a potentially new copper district of Chile.
The PEA is progressing well and we look forward to releasing the
results to the market towards the end of July.”
Marimaca Copper Project Overview
Marimaca Copper released an updated Mineral
Resource Estimate (“MRE”) for Marimaca of 70 million tonnes, with
an average grade of 0.60% total copper, within the Measured &
Indicated Categories (approximately 420Kt of contained copper) and
40 million tonnes, with an average grade of 0.52% total copper,
within the Inferred Category (approximately 224kt of contained
copper) (refer release on 2 December 2019). This
represents an increase of almost 100% from the MRE released in
April 2018 and makes the Project one of the most significant copper
oxide discoveries in Chile in the last decade.
The Company is currently undertaking a PEA for
the Project, which is anticipated to be completed in July 2020. The
Project is expected to benefit from low upfront capital development
costs and, due to the favourable geometry of the orebody and
relatively simple oxide processing through SX-EW, Management
believes the Project will have very competitive operating costs,
delivering compelling economics in the PEA.
Overview of Option Extensions
Marimaca Copper has concluded numerous option
agreements to acquire claims which comprise the Marimaca Copper
Project as well as the surrounding properties which make up the
Company’s highly prospective exploration package.
Of these option agreements, the Company had a
number for which payments fell due during 2020 and early 2021.
These original payment dates are outlined in the following
table:
Tenement |
Amount Due(US$) |
Date Due |
|
|
|
Llano/Mercedes |
50,000 |
06-May-20 |
|
|
|
La Atómica |
4,400,000 |
14-Nov-20 |
|
|
|
Naguayán |
1,750,000 |
03-Jan-21 |
|
|
|
Newco Marimaca |
3,000,000 |
14-Feb-21 |
|
|
|
As a result of the unprecedented Coronavirus
pandemic, the Company commenced several cost reduction programmes
in March to preserve vital capital for the Company. One of the
largest expenditures in Marimaca Copper’s budget in the ensuing 12
months was related to outstanding option payments for some of the
claims comprising Marimaca. The Company identified these as key
items which could relieve pressure on the Company and assist it in
avoiding a potentially highly dilutive capital raise in an
uncertain post pandemic global equity market.
The Company approached each of its partners and
proposed to extend the dates of the option payments. Each of the
partners was receptive and understanding of the difficult and
uncertain circumstances and agreed to extend the payments, some of
which will include an additional sum for interest. The following
table summarises the new payment schedule.
Tenement |
New Amount Due(US$) |
New Date Due |
|
|
|
Llano/Mercedes |
50,000 |
06-Sep-20 |
|
|
|
La Atómica |
4,703,816 |
|
|
1,000,000 |
14-Nov-20 |
|
1,055,230 |
14-May-21 |
|
2,648,586 |
14-Nov-21 |
|
|
|
Naguayán |
1,846,265 |
|
|
554,639 |
01-Feb-21 |
|
205,966 |
12-Apr-21 |
|
1,085,660 |
05-Oct-21 |
|
|
|
Newco Marimaca |
3,222,928 |
14-Oct-21 |
|
|
|
Qualified Person
The technical information in this news release,
including the information that relates to geology, drilling and
mineralization was prepared under the supervision of, or has
been reviewed by Sergio Rivera, Vice President of Exploration,
Marimaca Copper Corp, a geologist with more than 36 years of
experience and a member of the Colegio de Geólogos de Chile and of
the Institute of Mining Engineers of Chile, and who is the
Qualified Person for the purposes of NI 43-101 responsible for the
design and execution of the drilling program.
The Qualified Person for content, other than
geological information, of this news release is Luis Tondo, Chief
Executive Officer and Director of Marimaca Copper, a mining
engineer with more than 30 years of experience and a Fellow of The
Australasian Institute of Mining and Metallurgy, who is the
Qualified Person for the purposes of NI 43-101.
All QPs confirm they have visited the project
area, reviewed relevant project information, allowing the correct
technical judgement in their respective areas of expertise, in turn
used in the writing and reviewing the contents of this news
release.
Marimaca Copper and the Marimaca Project
Marimaca is fast becoming recognised as one of
the most significant copper discoveries in Chile in recent years as
it represents a new type of deposit which challenges accepted
exploration wisdom and promises to open up new frontiers for
discoveries elsewhere in the country. Marimaca is hosted by
intrusive rocks while the numerous manto deposits in the same
region are hosted by volcanics. With a lack of new copper
exploration discoveries in Chile, the growing Marimaca resource is
a high-profile development project as it is situated in the coastal
belt at low elevation close to Antofagasta and Mejillones. This
prime location could enable its future development at a reduce
capital cost relative to many other copper developments. Marimaca
will benefit from nearby existing infrastructure including roads,
powerlines, ports, a sulphuric acid plant, a skilled workforce and
seawater and a relatively low environmental impact.
Contact InformationFor further information
please visit www.marimaca.com or contact:
Tavistock +44 (0) 207 920
3150Jos Simson/Emily Mossmarimaca@tavistock.co.uk
Forward Looking Statements
This news release includes certain
“forward-looking statements” under applicable Canadian securities
legislation. These statements relate to future events or the
Company’s future performance, business prospects or opportunities.
Forward-looking statements include, but are not limited to, the
impact of a rebranding of the Company, the future development and
exploration potential of the Marimaca Project. Actual future
results may differ materially. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements reflect the beliefs,
opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while
considered reasonable by Marimaca Copper, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results, performance or achievements to
be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: risks related to share price
and market conditions, the inherent risks involved in the mining,
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices, the possibility of
project delays or cost overruns or unanticipated excessive
operating costs and expenses, uncertainties related to the
necessity of financing, the availability of and costs of financing
needed in the future as well as those factors disclosed in the
Company’s documents filed from time to time with the securities
regulators in the Provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince
Edward Island and Newfoundland and Labrador. Accordingly, readers
should not place undue reliance on forward-looking statements.
Marimaca Copper undertakes no obligation to update publicly or
otherwise revise any forward-looking statements contained herein
whether as a result of new information or future events or
otherwise, except as may be required by law.
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