07:01 AM EDT, 08/21/2025 (MT Newswires) -- Marimaca Copper ( MARIF ) said Thursday it has recently executed a binding asset purchase option agreement to acquire a used sulfuric acid plant in Chile from CEMIN Holding Minero.

A statement noted sulfuric acid is one of the key input costs for the Marimaca Oxide Deposit (MOD), and Marimaca said "the ability to produce a significant amount of its own supply will reduce exposure to a volatile acid market".

Among highlights, Marimaca has executed an option agreement to acquire sulfuric acid plant for US$2.5 million. It includes an exclusivity period of 3-months to allow further detailed technical and engineering reviews including capital and operating cost estimates for the installation and operation of the plant.

Marimaca cited plant capacity of up to 150ktpa of concentrated sulfuric acid, representing approximately 30% to 40% of total acid consumption at the MOD depending on phase of development.

It also noted indicative operating costs show potential for approximately 30% reduction in acid cost relative to current long-term forecast and normal historical spot and contract acid prices delivered to Mejillones; and said the agreement marks a "significant mitigation of key financial risk for the company."

Hayden Locke, President & CEO of Marimaca, said: "The MOD is forecast to be a mid-level acid consumer in the context of Chilean heap leach operations, and we continue to recognize acid cost as one of our most important drivers of profitability. We have numerous operational levers we can utilize to reduce acid consumption, if necessary, however, lowering the volatility associated with one of our key consumables was a logical step for the company.

"Based on current projections from Comision Chilena del Cobre, which provides industry forecasts for long term acid supply and demand in the Chilean market, the expectation is for acid prices to normalize at around US$95/tonne in Mejillones from 2028 onwards. Our analysis indicates, based on today's elemental sulfur price (CFR Mejillones), a company-owned acid plant could produce sulfuric acid for approximately US$70/tonne, excluding by-product credits from heat generation. This represents an approximate 30% reduction from the current long-term acid price forecasts from Cochilco. This discount is even more significant if you consider current spot prices, which are artificially elevated by H2SO4 seaborn freight rates and strong demand from the global fertilizer industry.

"In addition, while the elemental sulfur and global sulfuric acid markets exhibit reasonably strong price correlation3, the underlying volatility of the final acid cost via a sulfur burner is reduced. This is due to stoichiometric relationship of reacting one tonne of elemental sulfur to produce approximately three tonnes of concentrated (98%) sulfuric acid."

MARI was up $0.08 or 0.7% at $11.10 on the TSX yesterday.