Marimaca Copper has successfully raised C$409 million through a dual Canadian and Australian equity offering, positioning the company to advance its flagship Marimaca Project and exploration at Pampa Medina.
- C$136.5 million Canadian Treasury Offering to fund project advancement
- C$272.5 million Secondary Offering reduces Greenstone Group's stake from 18.58% to 6.44%
- Proceeds to support engineering, drilling, and corporate activities
- Offering subject to TSX approval and ASX waiver for Australian component
- Strong institutional demand from new and existing shareholders
Equity Raise Overview
Marimaca Copper Corp. has completed a significant global equity bookbuild, raising approximately C$409 million (around A$423 million) through a combination of a Canadian Treasury Offering and a Secondary Offering across Canadian and Australian markets. The Canadian Treasury Offering alone brought in C$136.5 million, with the remaining C$272.5 million raised via secondary sales by existing shareholders, primarily the Greenstone Group.
This capital injection is a pivotal step for Marimaca as it seeks to progress its Marimaca Copper Project, located in Chile's Antofagasta region, and expand exploration efforts at the nearby Pampa Medina property. The funds will be allocated to pre-construction engineering, early site works, a substantial drilling campaign, and general corporate purposes.
Shareholder Impact and Market Reception
The Secondary Offering, which involved the sale of existing shares by Greenstone Resources II L.P. and other shareholders, has significantly reduced their combined ownership from approximately 18.58% to 6.44%. This dilution reflects a strategic move by these shareholders to realise value while allowing Marimaca to broaden its investor base.
Market response to the offering was robust, with strong commitments from both new and existing institutional investors. The Canadian Treasury Offering is pending approval from the Toronto Stock Exchange, while the Australian component benefits from an ASX waiver, facilitating the issuance of CHESS Depositary Interests.
Strategic Outlook
Marimaca is currently advancing detailed engineering and permitting processes for the Marimaca Oxide Deposit, an IOCG-type copper deposit. Concurrently, the company is conducting a Phase II drilling program at Pampa Medina, following a successful discovery of a high-grade sedimentary horizon in 2025. The fresh capital will underpin these initiatives, aiming to de-risk the project and enhance resource definition ahead of construction decisions.
With a pro forma cash position of approximately C$227 million before transaction costs, Marimaca is well-positioned to maintain momentum in a competitive copper market, where demand for new supply remains strong amid global decarbonisation efforts.
Regulatory and Forward-Looking Considerations
While the offering marks a significant milestone, completion of the Treasury Offering remains subject to TSX approval, introducing some regulatory uncertainty. The company has also committed to a 90-day lock-up period for the Selling Shareholders, which should provide market stability in the near term.
Looking ahead, Marimaca's ability to execute its development plan will depend on continued exploration success, timely permitting, and market conditions. Investors will be watching closely how the company leverages this capital to transition from exploration to production.
Bottom Line?
Marimaca’s capital raise sets the stage for a critical phase of project development, but regulatory approvals and execution risks remain key watchpoints.
Questions in the middle?
- Will TSX approval for the Treasury Offering proceed smoothly and on schedule?
- How will the reduced stake of Greenstone Group influence Marimaca’s shareholder dynamics?
- What are the next milestones for the Marimaca Project’s permitting and construction timeline?