Assore International Holdings (AIH), a subsidiary of the South African Assore Group, has invested C$68m ($49.69m) in Marimaca Copper, which is developing the Marimaca project in Chile’s Antofagasta region.
The investment by AIH comprises two parts including the purchase of 9.42 million shares from Tembo Capital Mining affiliate Ndovu Capital at C$4.50 each, amounting to C$43.38m.
AIH also subscribed to 5.73 million units in Canadian exploration and development company Marimaca Copper through a C$25.76m non-brokered private placement.
As a result, AIH will hold around 14.99% of Marimaca Copper’s issued and outstanding common shares on a non-diluted basis, and 18.07% on a partially diluted basis.
Additionally, Marimaca Copper disclosed that another investor has committed to a C$4m private placement for one million units at the same price per unit as the AIH placement.
Marimaca Copper president and CEO Hayden Locke said: “With this transaction, Tembo has introduced a new investor that is perfectly aligned with the company’s longer-term objective, to be a copper producer. I am also very pleased that Tembo’s former nominee director, Tim Petterson, has agreed to stay on the board as an independent director.”
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By GlobalData
Marimaca Copper will use the funds raised for the development of the Marimaca project and exploration within its regional land package in Chile.
Assore International Holdings managing director Kieran Daly said: “We look forward to working alongside the Marimaca team as another step in our journey to diversify and grow our exposure to commodities and projects that are key to meeting the future needs of the global consumer, in a safe and sustainable manner.
“The well-defined Marimaca resource along with its considerable upside and medium-term copper production potential, is very interesting to us, and we are excited to partner with Marimaca by leveraging our mining heritage, experience and expertise to realise Marimaca’s potential.”
Last year, Marimaca Copper raked in C$20m from Japan’s Mitsubishi in a non-brokered private placement.
