Marimaca Copper Reports $150.9 Million Cash and Ongoing Exploration at June 2026

Strong Liquidity Position Supports Development

Marimaca Copper Corp. (ASX:MC2) closed the first half of 2026 with a commanding cash balance of $150.9 million, more than doubling its cash reserves from $62.7 million at the end of 2025. This surge was primarily driven by a substantial global treasury and secondary offering completed in late February, which raised approximately C$409 million ($298.5 million). The treasury component alone contributed C$136.5 million ($99.7 million) through the issuance of new shares priced at C$10 each.

Management expressed confidence that this liquidity is sufficient to fund ongoing operations and property option payments for at least the next twelve months, a critical consideration for a pre-revenue exploration company. However, the company acknowledged that financing beyond this horizon remains uncertain and contingent on market conditions and successful capital raises.

Exploration and Evaluation Assets Steady with No Impairment

The Marimaca Project, Marimaca Copper's flagship asset in Chile’s Antofagasta Region, continues to be classified under exploration and evaluation assets as of June 30, 2026. The company has not yet reclassified these assets to mineral property development, pending demonstration of technical feasibility and commercial viability. Management reported no impairment indicators, reflecting ongoing confidence in the project's potential.

Alongside its wholly owned Marimaca concessions, the company holds option agreements on the Pampa Medina and Madrugador projects within the Sierra de Medina District. These agreements, entered in late 2024, require staged payments totaling $12 million per property over five years, with the company retaining exploration rights and the option to withdraw before completing payments. Both properties are subject to net smelter royalties with buyback options.

Equity Transactions and Share-Based Compensation Activity

In addition to the treasury offering, Marimaca Copper completed a private placement in June 2025, raising C$24.4 million ($17.9 million). Notably, major shareholders Assore International Holdings and Ithaki Limited participated significantly in these equity raises, underscoring continued institutional support.

Share-based compensation expenses rose to $3.3 million for the six months ended June 30, 2026, up from $2.1 million in the prior year period. This increase reflects the grant of 1.1 million restricted stock units (RSUs) and 0.1 million stock options under the company's Omnibus Plan, with the latter valued using the Black-Scholes model. The company’s approach to incentive awards indicates a focus on aligning management and director interests with shareholder value creation.

Currency and Tax Considerations in Chilean Operations

Marimaca Copper’s Chilean subsidiaries hold significant value-added tax (VAT) credits arising from exploration and development expenditures. The company anticipates initiating formal VAT refund requests in late 2026, with expected recoveries in the first half of 2027, subject to regulatory and administrative processes. This potential cash inflow could further bolster liquidity but carries timing and legislative uncertainties.

The company also faces currency risk given its operational footprint in Chile and Canada. As of June 30, 2026, foreign currency exposure from Canadian dollars and Chilean pesos amounted to $32.9 million, with a 10% currency shift potentially impacting net loss by $2.2 million and $1.1 million respectively. Interest rate risk remains limited due to the company’s cash holdings in interest-bearing accounts and absence of significant variable-rate debt.