07:32 AM EST, 12/17/2024 (MT Newswires) -- Marimaca Copper ( MARIF ) said Tuesday that it signed a binding option agreement to acquire the Madrugador project in Chile.

The company said Madrugador is located near the Pampa Medina project, and the acquisition consolidated its ownership of the southern extent of the Sierra de Medina property package.

Under the terms, Marimaca Copper ( MARIF ) will pay US$12 million over a five-year period. The sellers will retain a 1.5% royalty on Madrugador's net gross sales. Marimaca can buy back 1.0% of the royalty for US$1.5 million.

"The acquisition of Madrugador consolidates our ownership of what we now recognize as a highly prospective district for complementary leachable copper resources, underpinning our aspirations for growth in copper production in the future," said Hayden Locke, Marimaca's president and CEO.

Marimaca's share price rose 4.1% on Monday to $4.59 on the TSX.