Capstone Copper has signed a definitive agreement with Luca Mining to sell its Cozamin copper-silver-zinc-lead mine in Zacatecas, Mexico, for up to $385m (C$540.06m).
Capstone will receive $275m in cash at closing, which may be adjusted for standard transaction adjustments.
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In addition, it will receive $15m in Luca Mining shares at the time of closing and $35m in deferred consideration to be paid on the first anniversary following completion of the sale.
The agreement also includes up to $60m in contingent payments, dependent on average annual copper prices.
The company stated that proceeds from the transaction will reinforce its balance sheet and increase financial flexibility to support its growth pipeline.
Capstone is not required to seek shareholder approval or meet any financing conditions to complete the sale.
Cozamin is an underground mine located 3.6km north-north-west of Zacatecas, producing copper and silver, along with zinc and lead as supplementary products.
It began commercial production towards the end of 2006 under Capstone’s ownership, starting with a processing rate of 1,000t per day.
Although initial reserves suggested a mine life of three years, ongoing exploration activities have allowed Capstone to extend operations, with the mine now projected to remain productive until 2030.
For the period from 2023 to 2030, production at Cozamin is anticipated to average 20,000 tonnes per annum (tpa) of copper and 1.3 million ounces of silver.
Capstone president and CEO Cashel Meagher said: “Cozamin has been an important part of our portfolio, providing stability and strong cash flows as Capstone has matured into a diversified copper producer.
“Since its first full year of operations in 2007, Cozamin has delivered consistently strong performance, a testament to the capability and quality of the team. We extend our sincere thanks to everyone at Cozamin for their dedication to safety and operational excellence over this period.”
The sale is expected to close in the fourth quarter of 2026, subject to regulatory approvals, including those from the stock exchange and the Mexican National Antitrust Commission.
Scotiabank is acting as Capstone’s exclusive financial adviser, with Blake, Cassels & Graydon providing Canadian legal counsel and Creel, García-Cuéllar, Aiza y Enríquez serving as Mexican legal counsel.
In August 2025, Capstone sanctioned the Mantoverde Optimised project in Chile for construction.
