- To receive $275M in upfront cash
- Net proceeds provide financial flexibility to support growth pipeline
- Transaction optimises portfolio and further strengthens balance sheet
- Follows acquisition of San Pietro last month
Capstone Copper Corp. (ASX:CSC) has entered into a definitive agreement to sell its Cozamin copper-silver-zinc-lead mine in Mexico to Luca Mining Corp. for up to $385 million in total consideration.
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Under the terms of the transaction, the total consideration is made up of:
• $275 million in upfront cash, subject to customary closing adjustments
• $15 million in Luca shares, to be issued to Capstone at closing
• $35 million in deferred consideration, to be received on the first anniversary of closing
• Up to $60 million in contingent cash consideration tied to annual average copper prices
Cashel Meagher, president and CEO, said net proceeds from the transaction will strengthen the company’s balance sheet and provide financial flexibility to support its growth pipeline.
“Cozamin has been an important part of our portfolio, providing stability and strong cash flows as Capstone has matured into a diversified copper producer,” Mr Meagher said.
“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.
“We believe Cozamin will be well positioned under Luca’s ownership, providing regional expertise, focus, and commitment to invest in the mine’s future for the long-term benefit of the workforce and the surrounding communities.”
Mr Meagher told shareholders the transaction optimises the company’s portfolio and further strengthens the company’s balance sheet, enabling it to redeploy capital into its high-return growth projects and allowing leadership to focus on the opportunities we believe will create the most value for our shareholders.
“It is an ideal time to streamline our portfolio through this divestiture as we advance towards transformational copper growth in Chile and the United States,” he said.
“We are also pleased to retain exposure to the exploration upside at Cozamin, through our shareholding in Luca, following completion of the Transaction. Given the strong operational track record of the Luca team in Mexico, we believe they will be excellent stewards of the mine and are well placed to unlock its full potential.”
The transaction is expected to close in the fourth quarter of 2026.
The deal follows Capstone’s completion of the acquisition of the copper assets at the San Pietro copper-gold- iron-cobalt project located between the company’s Mantoverde, Santo Domingo, and Sierra Norte properties in Chile’s Atacama Region last month.
CSC was up 1.58% to $14.78. Mkt cap $11.11B.
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