Marimaca Copper Corp T.MARI

MARI news - Chileans reject new constitution & Company news

[Brecknock]

Always, same source. Thought good points. Hopefully others find useful. 
B
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Hello, 

Over the last couple of weeks there have been a number of significant news items and events in relation to Marimaca Copper. I just wished to comment on and discuss a couple of these :

 

• Chileans reject new constitution - Last Sunday (September 4th) the Chilean people resoundingly rejected a newly proposed socalist constitution. The majority of 62% voted no, on a turnout of more than 85% of the electorate. I believe that further constitutional reform will continue, as it should. The current constitution has actually been amended nearly 50 times since its ratification in 1980. However the rejection of this recent proposal, which many have seen as radical and unworkable, has been seen as a highly positive sign of democratic maturity. 

 

• Marimaca news : 2022 drill campaign completed, next an updated resource - On Wednesday 7th September Marimaca announced the completion of their 2022 drilling campaign, along with a number of positive infill drill results (For the full announcement please Click Here). The results of the drill program continued to validate the geological interpretation of the Marimaca Oxide Deposit (MOD). Oxide mineralization remains open on the eastern part of the deposit, while drilling into the newly defined MAMIX zone continues to intersect extensions of higher-grade oxide and mixed mineralization at depth. Next, all drilling data up until June 30th will be included into a new mineral resource estimate, expected to be released at the end of September / early October, which I expect to show a significant increase in the mineable resource. 

 

• Marimaca news : US$15.5m / C$20.25m financing from Osisko Gold Royalties - today, Friday 9th September, Marimaca announced the closing of a C$20.25m investment from Osisko Gold Royalties (For the full announcement please Click Here). Against these currently difficult markets I see this as an excellent financing decision. The financing is non-dilutive, which is especially important as mining equities remain depressed, and the new royalty arrangement only increases the total royalty burden on the MOD by approximately 0.39%. In effect the Company is arbitraging a right they have to buy back the main royalty over the MOD, to then reselling it with a slightly larger footprint for a larger amount of money. From what I can calculate the negative effects of this financing on the overall NPV of the project are limited, and heavily outweighed by its positive result for shareholders from its non-dilutive nature. 

 

 

Overall summary - as we exit a quiet summer and a difficult time for world markets, we are starting to see a crescendo of good news with respect to both Chile and Marimaca's own development. Chilean politics seems to have taken a definitive step away from populism, which bodes well for both the people of Chile and for international investors looking to invest in the future of the Country. Marimaca Copper at the same time has now successfully completed a sizable financing that has not diluted shareholders, and at the same largely leaves the economic potential of the company's main asset unchanged. We now look forward to an updated mineral resource estimate over the next short while, which I expect to show another positive leap forward in the development of the Company and its main asset.