Marimaca Copper raising $24.4 million for Chilean project
Marimaca Copper Corp. [MARI-TSXV] has arranged a non-brokered private placement of 5.31 million common shares priced at $4.60 per share, for gross proceeds of US$17.7 million or approximately $24.4 million.
Net proceeds are earmarked for exploration to advance the company’s flagship Marimaca copper project, which is located in the Antofagasta region of northern Chile.
The private placement is expected to be subscribed for by existing insider shareholders, including Assore International Holdings Ltd. (AIH) and Ithaki Ltd., with each subscribing for 2.25 million shares and contributing approximately $10.35 million. An additional institutional investor, together with its affiliates, will subscribe on the same terms as AIH and Ithaki for the remaining shares.
AIH is a related party of the company by virtue of its significant shareholding and contractual right to nominate a director to the company’s board. Additionally, Ithaki is a related party of the company by virtue of holding more than 10% of the issued and outstanding shares.
Marimaca shares were unchanged at $5.28 and currently trade in a 52-week range of $5.89 and $3.61.
Marimaca was in the news last year when it announced the discovery of the northern extension of the Pampa Medina deposit, located approximately 26 kilometres north of the company’s flagship Marimaca Oxide deposit located in Chile’s Antofagasta region. The company has also reported the results of a maiden scout drilling program at the Pias target, located northwest of Pampa Medina with the broader Sierra de Medina property block. Results from the scout drilling demonstrate the potential for delineation of near-surface copper oxide mineralization, the company said in a press release.
Marimaca shares advanced on the news, rising 3.8% or 19 cents to $5.08. The shares currently trade in a 52-week range of $5.89 and $2.77.
“The discovery of Pampa Medina Norte validates our exploration model targeting the key sedimentary and volcanic host units that we know to be productive for manto-style mineralization both locally and regionally – including recent tier 1 greenfield discoveries like Antofagasta’s Cachorro deposit,’’ said Sergio Rivera, Vice-President, Exploration at Marimaca Copper.
Drilling highlights include Hole SMR-01, which was drilled north of the known northern extent of the Pampa Medina deposit and represents a material extension of the sediment and volcanic-hosted manto-style mineralization. Highlight results include 400 metres of 0.49% copper from 250 metres, including 216 metres at 0.70% CuT from 250 metres (dominantly oxides), including 102 metres at 1.20% CuT from 250 metres, including 76 metres at 1.57% CuT from 276 metres.
SMR-01 intersected significant oxide copper and chalcocite mineralization from 272 metres to 462 metres, transitioning to dominantly chalcopyrite mineralization from 462 metres to 650 metres (final depth).