08:23 AM EDT, 07/16/2024 (MT Newswires) -- Marimaca Copper ( MARIF ) said Tuesday that it secured a $68 million investment from Assore International Holdings (AIH).

Following the transaction, AIH will own 15% of Marimaca on a non-diluted basis and 18.1% on a partially diluted basis.

Marimaca plans to use the proceeds to advance its flagship Marimaca copper project in Chile, as well as for exploration work programs at key targets within the company's regional land package.

The investment comprises the acquisition of about 9 million shares by AIH from Tembo Capital for about $42 million.

The offering also includes the issuance of about 6 million units to AIH through a private placement for nearly $26 million in proceeds.

"AIH has completed extensive due diligence and is aligned with our objective of becoming a copper producer, while continuing to invest in exploration and other opportunities for value creation," Marimaca President and CEO Hayden Locke said. "AIH and its parent company Assore Holdings bring a valuable combination of deep mining heritage, business acumen and financial strength, which further derisks us on our development journey."

Another investor will also subscribe for 1 million units in Marimaca on the same pricing terms for $4.5 million in proceeds.

Each unit consists of one share and one half of a warrant priced at $4.50 per unit. Each warrant will entitle AIH to purchase one additional share at $5.85 for 18 months.

Marimaca's share price rose 1.1% yesterday to $3.84 on the TSX.