- Assore International Holdings is investing C$68 million in Marimaca Copper (TSX:MARI), a junior miner developing an eponymous and highly prospective copper project in Chile’s Antofagasta region
- Once all transactions close, AIH will own 14.99 per cent of issued and outstanding Marimaca shares on a non-diluted basis and 18.07 per cent on a partially diluted basis
- Marimaca is a Canadian exploration and development company advancing the million-ton Marimaca copper project in Chile
- Marimaca Copper stock has added 0.25 per cent year-over-year and 52.09 per cent since 2019
Assore International Holdings (AIH) is investing C$68 million in Marimaca Copper (TSX:MARI), a junior miner developing an eponymous and highly prospective copper project in Chile’s Antofagasta region.
AIH focuses on emerging international mining and marketing operations and investments, falling under the umbrella of the Assore Group, a private company with almost a century of experience in mining, processing and marketing ores, minerals and metals, mainly in South Africa. AIH’s portfolio also includes stakes in Gemfields Group, Atlantic Lithium and Vision Blue Resources.
AIH’s investment
AIH will acquire 9,417,210 Marimaca common shares from an affiliate of Tembo Capital Mining for C$4.50 per share for proceeds of C$42,377,445.
The investor will also purchase 5,725,000 units through a non-brokered private placement for gross proceeds of C$25,762,500. Each unit is priced at C$4.50 and consists of one share and one half of one share purchase warrant. Each warrant entitles AIH to purchase one share for C$5.85 for 18 months after the financing closes.
After both transactions, AIH will own 14.99 per cent of issued and outstanding Marimaca shares on a non-diluted basis and 18.07 per cent on a partially diluted basis.
The unit price represents a modest 15 per cent premium to the 20-day volume-weighted average price of shares on the TSX as of July 12.
AIH has the option to purchase an additional 756,695 shares from Tembo at a price equal to the greater of C$4.50 per share, or the 30-day volume-weighted average price of shares on the TSX when the option is exercised. The option is exercisable within 30 business days of the initial purchase’s first anniversary.
An additional, unnamed investor will subscribe for 1 million units through a private placement on the same terms as AIH for proceeds of C$4.5 million.
The transactions are expected to close on or about July 22, 2024, and are subject to the approval of the TSX.
The Marimaca copper project
The junior miner will allocate funds from the private placements to exploration work at prospective targets within its land package, as well as development activities at its flagship Marimaca copper project, including:
- Technical and related costs for a definitive feasibility study.
- Design and engineering programs.
- Environmental permitting.
The project’s 2023 mineral resource estimate details 900,000 tons of copper measured and indicated and 141,000 tons of copper inferred, with management estimating initial production by 2028.
At copper’s current price of approximately US$9,650 per ton, this means the project grants exposure to more than US$10 billion in the ground, 26.5 times more than Marimaca’s current market capitalization of C$377 million.
Leadership insights
“Firstly, I would like to take this opportunity to thank Tembo for its strong support of the company,” Hayden Locke, Marimaca Copper’s president and chief executive officer, said in a statement. “When conflicting investment and project development timelines meet, especially with one of a company’s key investors, it can create challenges for management. With this transaction, Tembo has introduced a new investor that is perfectly aligned with the company’s longer-term objective to be a copper producer. I am also very pleased that Tembo’s former nominee director, Tim Petterson, has agreed to stay on the board as an independent director.
“Secondly, on behalf of the board of directors, I would like to welcome our new partner, Assore International Holdings Limited, to the Marimaca team. AIH has completed extensive due diligence and is aligned with our objective of becoming a copper producer, while continuing to invest in exploration and other opportunities for value creation. AIH and its parent company Assore Holdings bring a valuable combination of deep mining heritage, business acumen and financial strength, which further de-risks us on our development journey.
“Lastly, we welcome Kieran Daly, managing director of Assore International Holdings Limited, to the board as AIH’s nominee, and look forward to working closely with him and the broader Assore Group as we push ahead with our development plans.”
In a statement, Daly said, “The well-defined Marimaca resource, along with its considerable upside and medium-term copper production potential, is very interesting to us, and we are excited to partner with Marimaca by leveraging our mining heritage, experience and expertise to realize Marimaca’s potential.”
About Marimaca Copper
Marimaca is a Canadian exploration and development company advancing the million-ton Marimaca copper project in Chile.
Marimaca Copper stock (TSX:MARI) is up by 4.17 per cent trading at C$4 per share as of 11:53 am ET. The stock has added 0.25 per cent year-over-year and 52.09 per cent since 2019.
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(Top photo: Marimaca Copper)