Canada’s Capstone Mining has agreed to merge with Chile-focused Mantos Copper to create a premier copper producer focused on the Americas.

Called Capstone Copper , the combined business will be based in Vancouver, British Columbia, and trade on the Toronto Stock Exchange.

It will have a combined 2021 copper production base of more than 175,000t of the metal, as well as 4.9 million tonnes of joint copper reserves.

The company will have operations in the Pinto Valley, US; Cozamin, Mexico; and Mantos Blancos, Mantoverde and Santo Domingo, Chile.

According to the agreed terms, Capstone shareholders will receive one newly issued Capstone Copper share for each share held.

Capstone shareholders will own 60.75% of the new entity while Mantos shareholders will own the remaining 39.25% stake after deal completion in Q1 2022.

Mantos executive chairman John MacKenzie will serve as CEO of the combined company. Capstone president, CEO and director Darren Pylot will assume the role of executive chairman.

Pylot said: “This transaction is in-line with our strategic vision of growing a multi-asset and sustainable copper business in the Americas.

“Copper is increasingly being recognised as a critical metal to a greener future, and we continue to strive to be a significant producer of responsible copper while strengthening communities by building resilient operations.”

Production of the combined company is planned to be increased to 260,000tpa of copper by 2024.

This will be further increased to 380,000tpa of copper following the development of the Santo Domingo copper project in Chile.

Last year, Japan’s Mitsubishi Materials purchased a 30% interest in Mantos Copper’s Mantoverde copper mine.

Mantos Copper is run by investment firm Audley Capital Advisors and Orion Mine Finance.