VANCOUVER, British Columbia, Sept. 8, 2022 (GLOBE NEWSWIRE) — Marimaca Copper Corp. (“Marimaca Copper” or the “Company”) MARI is pleased to announce a US$15.5 million investment from Osisko Gold Royalties (“Osisko”) for a 1.0% Net Smelter Return Royalty (the “Osisko NSR”) (the “Investment”) on certain Claims , which hosts the Marimaca oxide deposit (“MOD” or “the Project”) and certain claims immediately adjacent thereto. Proceeds from the investment will be used for pre-approval, a Definitive Feasibility Study (the “DFS”) for the MOD and for general corporate and administrative expenses. Osisko’s royalties will effectively replace certain existing royalties for the project. Marimaca has pre-existing rights to withdraw some of the existing royalty payments for the MOD and therefore the investment limits the expected additional royalty burden on the project. Importantly, these existing rights include a buyback right for 1% of the outstanding royalty on the Marimaca 1-23 claims, which account for the majority of the project’s recoverable resources and projected copper production1.
highlights
- Significant funding in challenging equity markets with very modest additional royalty risk for the MOD1,2
- No net change in the royalty burden on the Marimaca 1-23 claims is expected given the ability to repurchase existing royalty payments2comprising the majority of the planned copper production for the MOD1
- Total additional royalty burden for the MOD estimated at approximately 0.39%1,2
- NSR applies to concessions covering the current resource and concessions immediately adjacent to the MOD
- The investment allows Marimaca to further advance various workflows, including permitting
- Represents strong support for the Marimaca project from a leading publicly traded licensing company with recognized technical expertise
Hayden Locke, President and CEO of Marimaca Copper commented:
“Osisko is well known for its technical prowess and as such we look forward to this significant investment…
