Marimaca enters options to acquire sulphuric acid plant

Executive Summary

• Marimaca Copper Corp. signed a binding option agreement to acquire a used 150,000 tpa sulphuric acid plant in Chile for $2.5 M, aiming to lower its key input cost and reduce exposure to volatile acid prices.
• The transaction includes an upfront $1 M payment and a second $1.5 M payment after a three‑month exclusive due‑diligence period, with mobilization required by 30 Jun 2026.
• Company’s internal analysis suggests the owned plant could produce acid at ~$70/tonne versus market forecasts of $95/tonne, delivering an estimated ~30 % cost reduction and improving project economics for the Marimaca oxide deposit (MOD).

Key Details

• Option Terms: Right to purchase used sulphuric acid plant for US$2.5 M; exclusivity period of 3 months for technical/engineering review.
• Payment Schedule: $1.0 M payable at execution; $1.5 M payable after due‑diligence period.
• Mobilization Deadline: Plant to be moved to a Marimaca‑designated site no later than 30 Jun 2026.
• Plant Capacity: Up to 150,000 tpa concentrated H₂SO₄ (≈30–40 % of MOD’s total acid consumption).
• Cost Comparison: New plant of similar size estimated at $35‑$40 M equipment cost, $50‑$60 M total installed cost; used plant acquisition represents a ~95 % discount.
• Operating Cost Impact: Indicative operating costs suggest ~30 % reduction versus current long‑term acid price forecasts ($95/tonne). Potential further savings from by‑product steam credits not yet quantified.
• Market Context: Cochilco projects Chilean acid price normalizing at $95/tonne from 2028 onward; Marimaca expects to be in production 2028–2029, aligning with favorable market dynamics.
• Technical Due Diligence: Initial site visit and review of independent engineering reports (Holtec International) completed; further detailed reviews ongoing during exclusivity period.
• Strategic Benefits: Reduces volatility of a key consumable, simplifies storage (elemental sulphur easier to store than concentrated acid), and mitigates financial risk for the MOD project.

Notable Quotes

“Based on current projections … a company‑owned acid plant could produce sulphuric acid for approximately $70 /tonne… This represents an approximate 30‑percent reduction from the current long‑term acid price forecasts.” – Hayden Locke, President & CEO

Materiality Assessment: Material – Positive (the acquisition is expected to materially improve cost structure and project economics).