/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Feb. 22, 2021 /CNW/ - Marimaca Copper
Corp. ("Marimaca Copper" or the "Company") (TSX: MARI)
announced today it has commenced a non-brokered private placement
pursuant to which it will issue up to 9,377,273 units ("Units") at
a price of C$3.30 per Unit for
aggregate gross proceeds of C$30,945,000. Each Unit will be comprised of one
common share of the Company (a "Common Share") and one-half of one
Common Share purchase warrant of the Company (each whole warrant, a
"Warrant"). Each Warrant will entitle the holder thereof to
purchase one additional Common Share at an exercise price of
C$4.10 at any time up to and
including December 3, 2022. The
proceeds of the private placement will be used to advance the
Company's Marimaca Project, for wider exploration activities and
general corporate purposes, as the Board of Directors of the
Company may approve and direct. The Company filed the listing
application with the Toronto Stock Exchange on February 17, 2021, with a trailing 5-day VWAP of
C$3.57/share. The transaction price
represents a 7.46% discount to this trailing 5-day VWAP.
Hayden Locke, President of
Marimaca Copper, commented:
"This additional capital, underpinned by a cornerstone
investment from a strategic, long term investor, means we are
financed, not only to test the multiple exciting, drill ready
targets we have at Marimaca and the surrounding areas, but also to
move the Marimaca Oxide Deposit ("MOD") towards production as
quickly as possible. We have been negotiating with this investor
for some time and it is exciting to now have them onboard.
"The MOD is a unique project in the copper space. Simple open
pit mining, simple SX-EW processing, low capital cost and high
margin with exceptional economics. Its simplicity also means we can
significantly shorten our development timelines, allowing Marimaca
to take full advantage of the expected continuing strength in the
copper market. We are currently planning out the schedule for both
permitting and the various technical studies required to achieve
this, with the objective of advancing this exciting project in an
accelerated manner.
"The drill rigs are now turning, testing the Marimaca
Sulphide Target, and we are in preparations to start drilling at
both the Cindy and Mercedes Oxide Targets. We believe each target
has the potential to add significant value to an already
outstanding project, as we seek to unlock what could become a new
copper district in Chile."
In connection with the private placement, the Company will issue
to certain eligible persons an aggregate of 181,545 Common Shares,
representing 2% of the number Units issued pursuant to the private
placement, in consideration for services rendered in connection
with introducing the Company to investors who participated in the
private placement. Closing of the private placement is
expected to occur on or about February 24,
2021 and is subject to customary closing conditions,
including receipt of all regulatory approvals.
All securities issued pursuant to the private placement,
including the Common Shares issued in consideration for services
rendered in connection with introducing the Company to investors,
are subject to a four month hold period.
Each of Greenstone Resources and Greenstone Co-Investment No. 1
(Coro) LP (collectively, "Greenstone") and Ndovu Capital XIV B.V.
("Tembo") have pre-emptive rights, as to 57.14% and 15.13%,
respectively, to participate in any equity offering by the Company,
subject in each case to the approval of the Toronto Stock Exchange.
If and to the extent that Greenstone and Tembo exercise such
pre-emptive rights, the Company will complete a second tranche of
the private placement on or about March 1,
2021.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
Units in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to qualification or registration under the
securities laws of any such jurisdiction. This news release does
not constitute an offer of securities for sale in the United States. The Units have not been,
nor will they be, registered under the United States Securities
Act of 1933, as amended, and such Units may not be offered or
sold within the United States
absent registration under U.S. federal and state securities laws or
an applicable exemption from such U.S. registration
requirements.
Forward Looking Statements
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation, including
statements related to the anticipated use of the proceeds from the
sale of the Units and the potential issuance of additional Units to
Greenstone and Tembo. Actual future results may differ materially.
There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made and are based upon
a number of assumptions and estimates that, while considered
reasonable by Marimaca Copper, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results, performance or achievements to
be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: risks related to share price
and market conditions, the inherent risks involved in the mining,
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices, the possibility of
project delays or cost overruns or unanticipated excessive
operating costs and expenses, uncertainties related to the
necessity of financing, the availability of and costs of financing
needed in the future as well as those factors disclosed in the
annual information form of the Company dated April 8, 2020, the final short form base
prospectus and other filings made by the Company with the Canadian
securities regulatory authorities (which may be viewed at
www.sedar.com). Accordingly, readers should not place undue
reliance on forward-looking statements. Marimaca Copper undertakes
no obligation to update publicly or otherwise revise any
forward-looking statements contained herein whether as a result of
new information or future events or otherwise, except as may be
required by law.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Marimaca Cooper Corp.