Marimaca Announces C$20 Million Strategic Investment from Mitsubishi Corporation

VANCOUVER, British Columbia, June 21, 2023 (GLOBE NEWSWIRE) -- Marimaca Copper Corp. (“Marimaca Copper”, “Marimaca” or the “Company”) (TSX: MARI) is pleased to announce a C$20 million equity investment by Mitsubishi Corporation (“Mitsubishi”) by way of non-brokered private placement (the “Strategic Investment”). Proceeds from the Strategic Investment will be used to advance and accelerate the development of the Company’s flagship Marimaca Copper Project located in the Antofagasta region, Chile.

Mitsubishi will subscribe for an aggregate 4,640,371 units (“Units”) consisting of one common share (a “Common Share”) and one Common Share purchase warrant (a “Warrant”) at a price of C$4.31 per Unit. Each Warrant will entitle Mitsubishi to purchase one additional Common Share at an exercise price of C$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 June 19, 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.