Marimaca Copper's (ASX:MC2) grid approval in Chile removes a development hurdle for the Marimaca oxide deposit and allows the company to advance power infrastructure arrangements for the project, Euroz Hartleys said in an Oct. 2 note.

The company secured approval to connect to the El Lince Line and also signed a preliminary power purchase agreement framework with a Chilean energy provider to supply the deposit with renewable energy sourced from the national grid.

The framework provides for 100% renewable power at costs aligned with the definitive feasibility study assumption of $93 per megawatt-hour. The proposed structure includes no take-or-pay provisions during ramp-up, which will limit payments for unused power while the operation moves toward commercial production, Euroz Hartleys said.

"The recent Pampa Medina sulphide drill intercepts deserve to be appreciated by the market as the project should significantly increase the company's mineral resource inventory in time," the equity research firm said.

It added that road upgrades and the planned fourth-quarter early works should establish the access required for construction, while a conceptual memorandum of understanding to assess the Dos Amigos acid plant could help reduce exposure to input price volatility.

Euroz Hartleys maintain a speculative buy recommendation on Marimaca Copper with an unchanged target price of AU$16.94.