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Marimaca Copper Announces US$15.5 Million Investment from Osisko Gold Royalties
VANCOUVER, British Columbia, Sept. 08, 2022 (GLOBE NEWSWIRE) -- Marimaca Copper Corp. (“Marimaca Copper” or the “Company”) (TSX: MARI) is pleased to announce a
About this update from Marimaca Copper Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Sept. 08, 2022 (GLOBE NEWSWIRE) -- Marimaca Copper Corp. (“Marimaca Copper” or the “Company”) (TSX: MARI) is pleased to announce a US$15.5 million investment from Osisko Gold Royalties (“Osisko”) for a 1.0% Net Smelter Return royalty (the “Osisko NSR”) (the “Investment”) on certain claims covering the Marimaca Oxide Deposit (“MOD” or “the Project”) and some claims immediately adjacent to it. Proceeds from the Investment will be used to advance permitting, a Definitive Feasibility Study (the “DFS”) for the MOD and for general corporate and administrative expenses. Osisko’s royalty will effectively replace certain existing royalties on the Project. Marimaca has pre-existing rights to retire some of the existing royalties covering the MOD and as such the Investment limits the expected incremental royalty burden on the Project. Importantly, these existing rights include a buyback right for 1% of the royalties outstanding on the Marimaca 1-23 claims, which forms the majority of the mineable resources and projected copper production for the Project1. Highlights Significant financing in challenging equity markets with only very modest incremental royalty exposure on the MOD1,2 Given ability to buyback pre-existing royalties, no expected net change to royalty burden on the Marimaca 1-23 claims2, which comprises the majority of the projected copper production for the MOD1 Total additional royalty burden on the MOD estimated to be approximately 0.39%1,2 NSR will apply to concessions covering the current resource and concessions immediately adjacent to the MOD The Investment allows Marimaca to continue to progress various workstreams, including permitting Represents a strong endorsement for the Marimaca Project from a leading public royalty company with well-respected technical expertise Hayden Locke, President & CEO of Marimaca Copper, commented: “Osisko is renowned for its technical capabilities, and we therefore see this significant investment, following extensive due diligence, as a strong endorsement of the Marimaca Oxide Project and the work completed by our technical teams. “Given the current challenging equity market conditions, we believe this financing also delivers meaningful value to our existing investors, lowering overall dilution while providing us with a strong balance sheet to continue wit...