Marimaca Copper Targets ASX Dual Listing to Propel Chilean Project
Canadian miner Marimaca Copper (TSX: MARI) has initiated plans to list on the Australian Securities Exchange (ASX) in a strategic bid to drive growth and secure additional capital for its flagship copper project in Chile.
The company has engaged Australian law firm Thomson Geer to finalize a prospectus, aiming to complete the listing process before Christmas. According to the Australian Financial Review, Marimaca does not plan to appoint brokers until the March quarter. While the company has ruled out any immediate equity raise, it views the ASX listing as an opportunity to tap into Australia’s robust institutional capital market.
This move mirrors a similar strategy employed by Capstone Copper (TSX: CS; ASX: CSC), which dual-listed earlier this year. Capstone’s dual listing enabled its private equity backer, Orion, to sell A$593 million ($387 million) worth of shares through a block trade targeting Australian investors.
Advancing a Key Copper Asset
The ASX listing aligns with Marimaca’s broader efforts to progress the definitive feasibility study (DFS) for its namesake Marimaca copper project, located in Chile’s Antofagasta region. Regarded as one of the most significant copper oxide discoveries in Chile in the past decade, the project is expected to become a low-capital, high-margin operation, according to company President and CEO Hayden Locke.
Since discovering the deposit in 2016, Marimaca has more than doubled its resources. Current estimates indicate 200 million tonnes of measured and indicated resources grading 0.45% copper, containing 900,000 tonnes of metal. An additional inferred resource of 37 million tonnes grades 0.38% copper, contributing another 141,000 tonnes.
The open-pit, heap-leach project is projected to produce 40,000 tonnes of copper cathodes annually during its first six years of operation, beginning in 2028. Over its 12-year mine life, the total recovered copper is estimated at 430,000 tonnes.
Competitive Economics and Sustainability
A 2022 Preliminary Economic Assessment highlighted the project’s competitive edge, placing its operating costs in the bottom 15% of the global all-in sustaining cost curve at $1.29 per pound of copper. At a copper price of $3.70 per pound, the project offers a 65% cash margin.
The project’s low-carbon intensity production has also drawn attention from major investors. Mitsubishi Corporation acquired a 5% equity stake in Marimaca in June 2023, citing its sustainable production potential. In July, South Africa’s Assore Group invested C$68 million ($44 million) in the company.
Market Momentum
Investor confidence in Marimaca has surged, with the company’s shares rising nearly 50% this year. Its market capitalization now stands at C$515.2 million ($369 million). The planned ASX dual listing is expected to further enhance the company’s visibility and access to capital, bolstering its efforts to bring the Marimaca copper project to fruition.
