Marimaca Copper Corp. Moves to Secure Sulfuric Acid Supply Through Acquisition in Chile

Marimaca Copper Corp. has entered a binding asset purchase option agreement to acquire a used sulfuric acid plant from CEMIN Holding Minero for $2.5 million. This strategic move aims to enhance the companyás operational efficiency and mitigate exposure to fluctuating sulfuric acid prices, a critical input for the Marimaca Oxide Deposit (MOD) project in Chile.

The agreement includes an upfront payment of $1 million, with an additional $1.5 million due after a three-month exclusivity period dedicated to technical assessments. The plant, capable of producing up to 150,000 tonnes per annum (ktpa) of concentrated sulfuric acid, is projected to cover 30% to 40% of Marimaca's total acid consumption during various development phases. Current market analysis suggests that constructing a new sulfuric acid facility could cost between $35 million and $60 million, making the acquisition financially advantageous.

Marimaca projects that operating costs for the acquired plant could be approximately 30% lower than existing market prices, which are forecasted to stabilize around $95 per tonne in Mejillones by 2028. The company's analysis indicates that self-producing sulfuric acid could cost roughly $70 per tonne, significantly reducing financial volatility. Additionally, the plant's relocation and start-up costs are expected to be lower than new equipment installations.

Hayden Locke, President and CEO, emphasized the importance of controlling acid costs as a key profitability driver. The MODás Definitive Feasibility Study is nearing completion and will not include potential upside from this acquisition, presenting an opportunity for future optimization.

In conclusion, Marimaca's acquisition of the sulfuric acid plant marks a strategic effort to reduce operating costs and enhance supply chain stability, positioning the company favorably as it prepares for production in 2028.