Sale of Non-Core Ivan Plant for up to US$17.0 million VANCOUVER, British Columbia, March 04, 2022 (GLOBE NEWSWIRE) -- Marimaca Copper Corp. (“Marimaca Copper” or the “Company”) (TSX: MARI) is pleased to announce that it has entered into a binding agreement to sell certain non-core Rayrock assets, including the Ivan SX-EW Processing Plant and associated mining claims, to 5Q SpA (“5Q”), a privately-held specialist mineral processing company based in Santiago, Chile, for total consideration of up to US$11.0 million, plus up to US$6.0m in contingent payments. Details of the transaction are outlined below.
Transaction Details
Total Consideration
- Up to $11.0 million in total consideration to Marimaca
- US$150,000 upon signing
- US$350,000 upon approval of the Ivan Rayrock technical permits
- US$1.8 million – US$2.1 million on the 12-month anniversary of the transaction*, determined by LME copper price
- US$2.7 million – US$3.1 million on the 18-month anniversary of the transaction*, determined by LME copper price
- US$4.1 million – US$5.2 million on the 24-month anniversary of the transaction*, determined by LME copper price
- A 1.5% NSR on future production from the Ivan underground ore body
Contingent Payments
- Up to $6.0 million in contingent payments based on potential future stockpile acquisitions to be processed through the Ivan Plant, based on the amount of contained copper in the stockpiles acquired
- US$1.0m for stockpiles containing 5,000t - 10,000t total copper
- US$2.0m for stockpiles containing 10,000t - 20,000t total copper
- US$4.0m for stockpiles containing 20,000t - 30,000t total copper
- US$6.0m for stockpiles containing >30,000t total copper