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Marimaca Copper Corp T.MARI

Alternate Symbol(s):  MARIF

Marimaca Copper Corp. is a Canada-based exploration and development company focused on base metal projects in Chile. The Company’s principal asset is the Marimaca Copper Project, located in the Antofagasta Region of northern Chile. The Marimaca Copper Project is situated at a low altitude in Chile’s Coastal Copper Belt, 25 kilometers (km) east of the port of Mejillones and 45 km north of Antofagasta, Marimaca has access to water and power, road and rail networks supplying sulphuric acid and other consumables, as well as deepwater ports. The Marimaca Copper Project comprises a set of concessions (the 1-23 Claims), properties 100% owned and optioned by the Company, combined with the adjacent La Atomica and Atahualpa claims, over which Marimaca Copper has the right to explore and exploit resources. The Company also has an option agreement to acquire the Pampa Medina project (Pampa Medina), which consists of four mining concessions totaling 144 hectares.


TSX:MARI - Post by User

Bullboard Posts
Post by Oregonduckon Feb 20, 2017 12:10pm
211 Views
Post# 25869235

Mineable Reserves Valuation

Mineable Reserves Valuation"The recently announced Marimaca pit-constrained mineral resource estimate of 145,500 tonnes of copper in the measured and indicated categories and the 99,300 tonnes of copper in the inferred category provided the resource confirmation necessary to validate the decision to acquire the Ivan processing plant." (source: Coro Mining Jan. 2017)

At current US$6,000/tonne or $2.70/lb Cu, the Gross Valuation based on indicated reserves for Marimaca and Berta is likely Can$1 billion (no. of tonnes multiple by US$6,000 with rounding errors and exchange rate). On a Net Present Value (NPV) basis at a discount rate of 8% over 8-year mine life, it is estimated Gross Revenue would come to a NPV of $540 million - before mining costs, taxes, royalties etc. - or slightly over $1/share.

Fully ramped up in 2019 and thru' doubling of the output at the Marimaca Ivan plant  to 20 ktpy, Coro will likely be in the same league as Teck's Quebrada Blanca and Anglo American's El Soldado mines in Chile. Although small by industry standards, they are profitable mining operations for Teck and Anglo. Also, Chile has no new Cu discoveries for many years. Coro has now received the requisite permitting for Marimaca. Berta is keyed up to produce at end of Q1, 2017 at 5ktpy

The additional upside for Coro is exploration on the claims covering 38,000 ha. of virgin grounds held by Ivan (presuming the deal is closed shortly).

I still believe that COP would be in the cross hairs of one of the major miners such as Teck, BHP, Anglo, Lundin or First Quantum. The only way for Greenstone Private Equity to cash out or exit their majority investment is by way of an acceptance of a takeover bid. There is no way they can dump or liquidate into the market. At say 50 cents takeover price, they would make $130 million on their $20 million equity investment and at up to $1, the profits would rise to $280 million. As was discussed here before, Greenstone can force a squeeze-out of minority shareholders within the framework or ambit of the Canada Business Corporations Act. Greed is good, greedy is not.


Bullboard Posts