Core Viewpoint - Marimaca Copper Corp. has signed a binding asset purchase option agreement to acquire a used sulfuric acid plant in Chile, which is expected to significantly reduce the company's exposure to volatile sulfuric acid prices, a key input for the Marimaca Oxide Deposit [1][5]. Company Analysis - The acquisition of the sulfuric acid plant is valued at US$2.5 million, with an upfront payment of US$1 million and a second payment of US$1.5 million after a three-month due diligence period [5][12]. - The plant has a capacity of up to 150,000 tonnes per annum (ktpa) of concentrated sulfuric acid, which could cover approximately 30% to 40% of the total acid consumption at the Marimaca Oxide Deposit depending on the development phase [5][6]. - The company anticipates a potential 30% reduction in acid production costs compared to current long-term forecasts, with the ability to produce sulfuric acid at approximately US$70 per tonne [4][5]. Industry Context - According to projections from Comision Chilena del Cobre (Cochilco), acid prices in Chile are expected to normalize around US$95 per tonne from 2028 onwards, while the company-owned plant could produce sulfuric acid at a lower cost [4][18]. - The sulfuric acid market in Chile is currently influenced by high shipping costs and strong demand from the global fertilizer industry, but improvements in shipping rates are expected from 2026 onwards due to new fleet construction [14][18]. - The historical price correlation between elemental sulfur and sulfuric acid suggests that purchasing elemental sulfur may reduce overall exposure to price volatility [19][20].