Marimaca announces CAN$20 million strategic investment from Mitsubishi

Mitsubishi will subscribe for an aggregate 4 640 371 units consisting of one common share and one Common Share purchase warrant at a price of CAN$4.31 per Unit. Each Warrant will entitle Mitsubishi to purchase one additional Common Share at an exercise price of CAN$5.60 for a period of 24 months following the closing of the Strategic Investment. Following completion of the Strategic Investment, Mitsubishi will own approximately 5.0% of Marimaca’s issued and outstanding common shares on a non-diluted basis.

The Unit subscription price represents an 11% premium to the 20-day volume weighted average price of the Company’s common shares on the Toronto Stock Exchange (TSX) as of 19 June 2023. Mitsubishi is a major investor in the Latin American copper industry with a portfolio of existing investments including Escondida, Los Pelambres, Antamina, Los Bronces and Quellaveco.

Hayden Locke, President & CEO of Marimaca Copper, commented: “We are pleased to welcome Mitsubishi Corporation as a partner and shareholder in Marimaca. This investment is a strong endorsement of the quality of the Marimaca Project from an exceptionally well-respected and established stakeholder in the Chilean copper industry. We are pleased that Mitsubishi shares our view that the Marimaca Copper Project is a unique, very high quality, development stage project. Its location affords it several advantages including an expectation that it will be among the lowest carbon intensity copper producers in the industry. It is one of very few new copper projects that has the potential to deliver near term production of meaningful scale. Mitsubishi’s investment significantly de-risks our next phase of development and provides funding to accelerate progress toward the Definitive Feasibility Study and permitting, while minimizing dilution to our existing shareholders.”

Taro Abe, General Manager, Base Metals Dept., Mitsubishi Corporation, commented: “We are excited to be involved in the Marimaca project, which has the potential to deliver a meaningful new supply of copper in the near term. Of particular importance to us are the sustainability credentials of the project, which we believe will be a source of very low carbon intensity copper. We look forward to working together with the Marimaca team as it moves into the next phase of studies and permitting with the hope we can fully utilise our deep experience in the Chilean copper industry to further enhance this project.”

Read the article online at: https://www.globalminingreview.com/finance-business/30062023/marimaca-announces-can20-million-strategic-investment-from-mitsubishi/