Marimaca Copper (TSX: MARI) (ASX: MC2) surged by double digits on Wednesday after announcing a C$24.4 million ($17.7 million) private placement to fund its namesake project in northern Chile.
The offering comprises approximately 5.31 million common shares priced at C$4.60 per share, issued exclusively to institutional investors. Two of Marimaca’s cornerstone shareholders, Assore International Holdings and Ithaki, will buy most of the shares at 2.25 million each. A blue chip fund is expected to purchase the remaining portion.
The stock opened the trading day at C$4.88 apiece and closed at C$5.28 for an intraday gain of 10.2%. The rally takes the Toronto-based copper miner’s market capitalization to roughly C$534 million ($390 million).
Net proceeds from the offering will be used to advance the company’s 100%-owned Marimaca copper project in Chile’s Antofagasta region, hailed as one of the most…
