Marimaca Copper to acquire used sulfuric acid plant for $2.5 million

VANCOUVER - Marimaca Copper Corp. (TSX:MARI) (ASX:MC2), a mining company with an impressive 184% return over the past year according to InvestingPro data, has executed a binding option agreement to acquire a used sulfuric acid plant in Chile from CEMIN Holding Minero for $2.5 million, according to a press release statement issued Thursday.

The plant has a capacity of up to 150,000 tonnes per annum of concentrated sulfuric acid, which would represent approximately 30% to 40% of the total acid consumption required for the company’s Marimaca Oxide Deposit. The strategic acquisition aligns with the company’s growth trajectory, with InvestingPro analysis indicating the company is currently trading near its 52-week high of $8.43.

The agreement includes an upfront payment of $1 million with the execution of the agreement and a second payment of $1.5 million following a three-month exclusive due diligence period. Marimaca has committed to mobilize the plant equipment to a designated site before June 30, 2026.

The plant, which operated until 2015 before being placed on care and maintenance, would allow Marimaca to reduce its exposure to volatile acid markets, a key input cost for its copper operations.

According to the company, producing its own sulfuric acid could result in approximately 30% cost reduction compared to current long-term forecasts. Based on company analysis, the plant could produce sulfuric acid for approximately $70 per tonne, compared to market forecasts of around $95 per tonne from 2028 onwards. This cost-saving initiative is particularly significant for the $850 million market cap company, which analysts expect to achieve profitability this year, according to InvestingPro data.

The company noted that a new sulfuric acid plant of similar capacity would cost approximately $35-40 million in equipment alone, with total installation costs of $50-60 million. Relocation and start-up costs for the used plant are expected to be "materially lower."

Marimaca’s Definitive Feasibility Study for the Marimaca Oxide Deposit is nearly complete and undergoing final review before publication, though it will not include potential value from this acid strategy. With a strong financial health score and multiple positive indicators identified by InvestingPro, investors can access detailed analysis and 8 additional ProTips by visiting InvestingPro.

The transaction is structured as an asset purchase from CEMIN’s subsidiary Administradora Industrial y Minera Pada SpA, with Marimaca having completed initial technical due diligence including a site visit and review of independent engineering reports.

In other recent news, Marimaca Copper Corp. announced that its shareholders have approved all proposed resolutions during its Annual General Meeting. These resolutions included the election of directors and the appointment of the company’s auditor for the upcoming year. The meeting was held virtually, and approximately 51.90% of Marimaca Copper’s issued and outstanding common shares were represented in the voting process. The re-election of the company’s eight-member board of directors received overwhelming support, with each director securing between 99.73% and 100% of the votes cast in their favor. This development reflects strong shareholder confidence in the current leadership. The approval of the auditor appointment ensures that Marimaca Copper continues to maintain its financial transparency and accountability. These recent developments are significant for the company’s governance and operational strategy moving forward.

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