Marimaca announces sale of non-core Ivan plant for up to US $ 17.0 million, Canadian Business Journal

Vancouver, British Columbia, March 4, 2022 (GLOBE NEWSWIRE) — Marimaca Copper Corp. (“Marimaca Copper” or “Company”) (TSX: MARI) We have entered into a binding agreement to sell certain non-core Rayrock assets, including the Ivan SX-EW treatment plant and related mining claims, to 5Q SpA (“5Q”), a privately-owned specialty mineral treatment. It will be announced. Based in Santiago, Chile, the company pays up to US $ 11 million plus accidental payments of up to US $ 6 million. The details of the transaction are as follows.

Transaction details

Comprehensive consideration

  • Up to $ 11.0 million in total consideration for Marimaca
    • US $ 150,000 at signing
    • US $ 350,000 with Ivan Rayrock technical license approval
    • USD 1.8 million – USD 2.1 million on the 12th anniversary of the transaction*Determined by LME copper price
    • USD 2.7 million – USD 3.1 million on the 18th anniversary of the transaction*Determined by LME copper price
    • USD 4.1 million – USD 5.2 million on the 24th anniversary of the transaction*Determined by LME copper price
  • 1.5% NSR for future production from Ivan underground ore

Conditional payment

  • Accidental payments of up to $ 6 million based on potential future stockpile acquisitions processed through the Ivan plant, based on the amount of copper contained in the stockpile acquired
    • US $ 1 million for stockpiles including 5,000 to 10,000 tonnes of total copper
    • US $ 2 million for stockpiles containing 10,000 to 20,000 tonnes of total copper
    • US $ 4 million in stockpiles including a total of 20,000 to 30,000 tonnes of copper
    • US $ 6 million for stockpiles of more than 30,000 tonnes of total copper

Hayden Locke, President and CEO of Marimaca Copper, commented:

“The sale of the Ivan factory is in line with our strategy of independently promoting and developing the Marimaka project. Since we acquired the Ivan factory in 2017, the Marimaka project has continued to grow and evolve. The Ivan factory is no longer the core component of the project’s optimal development path. “

“We are very pleased to be able to conclude this transaction in 5Q. The Ivan SX-EW plant is ideal for 5Q and the 5Q team has an excellent track record of processing oxides and mixed ores stockpiled in Chile. We hope that Ivan Plant will be successful and will be at the core of our business. “


Marimaca acquired the Ivan SX-EW processing plant in 2017. The plant was operated by Compañía Minera Milpo SAA (“Milpo”) from 1995 to 2012. The plant has not been in operation since 2012. The installed capacity of this plant is 10,000 tons of copper cathode per year. The Ivan Plant has been considered non-core by Marimaka since the completion of the 2020 Preliminary Economic Assessment (“PEA”), which considered an independent copper cathode plant of 40,000 tonnes per year at the Marimaka project site (August 2020). See the announcement dated 4th)). Future development scenarios to be considered by DFS (planned for the second half of 2022) will consider development scenarios with an annual copper cathode capacity of over 40,000 tonnes. The Ivan factory is located about 20km south of the Marimaka project. This sale includes approximately 11,000 ha of mining claims held by Minera Rayrock Ltda in connection with the historic Ivan Mine.

Details of overall consideration

Details of the total purchase price are outlined in the table below.

Amount (USD) + LMECu Benchmark((((1)
Low Mid high Time threshold *(2)
payment <$ 3.70 / lb $ 3.70- $ 4.50 / lb > $ 4.50 / lb timing Oldest latest
1 $ 150,000 $ 150,000 $ 150,000 Repaired About signature About signature
2 $ 350,000 $ 350,000 $ 350,000 Repaired Allow approval Allow approval
3 $ 1,821,000 $ 2,000,000 $ 2,107,000 Repaired 12 months anniversary 12 months anniversary
Four $ 2,702,000 $ 3,000,000 $ 3,179,000 variable 6 months after payment 3 9 months after payment 3
Five $ 4,110,000 $ 4,800,000 $ 5,214,000 variable 6 months after payment 4 9 months after payment 4

(1) Based on the average price for the defined lookback period
(2) Payment timing of payments 4 and 5 as determined by a specific defined operational threshold

The transaction is expected to close in the first quarter of 2022.

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Description of future prospects

This news release contains certain “forward-looking statements” under applicable Canadian securities law. There is no guarantee that such statements will be proven to be accurate, and actual results and future events may differ materially from those expected in such statements. Forward-looking statements reflect the beliefs, opinions, and expectations of the day the statement was made, and although considered reasonable by Marimaca Copper, they are essentially important business, economic, and competitive. , Political, and social uncertainties and contingencies. Due to many known and unknown factors, actual results, performance, or outcomes may differ materially from the outcomes, performances, or outcomes expressed or implied by such forward-looking statements, and the parties concerned. We make assumptions and estimates based on the following: It is related to many of these factors. Such factors include risks related to stock prices and market conditions, inherent risks associated with the investigation and development of mining and mineral properties, uncertainties associated with the interpretation of drilling results and other geological data, and fluctuating metal prices. , Project delays or over-costs or unexpected excess operating costs and costs, uncertainties related to funding needs, availability and costs of future funding, and our company as of March 29. Factors disclosed in the annual information form of. A basic outlook for the final short form and other filings we have prepared for the Canadian Securities Regulatory Authority (available at in 2021. Therefore, readers should not place undue reliance on forward-looking statements. Marimaca Copper will publicly update or otherwise revise any forward-looking statement contained in this document as a result of new information, future events, or otherwise, except as required by law. We shall not be obliged.

Neither the Toronto Stock Exchange nor the Canadian Investment Industry Regulatory Authority is responsible for the validity or accuracy of this release.

CBJ News Maker

Marimaca announces sale of non-core Ivan plant for up to US $ 17.0 million, Canadian Business Journal

Source link Marimaca announces sale of non-core Ivan plant for up to US $ 17.0 million, Canadian Business Journal

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