Capstone Copper has agreed to sell its Cozamin copper-silver-zinc-lead mine in Zacatecas, Mexico, to Canadian operator Luca Mining for a total consideration of up to US$385 million (AU$541.8 million).
The transaction structure includes US$275 million in upfront cash, US$15 million in Luca equity issued at closing, US$35 million in deferred consideration due on the first anniversary, and up to US$60 million in contingent payments tied to annual average copper prices over three years.
Net proceeds from the divestment will boost Capstone’s balance sheet and provide funding flexibility as the miner advances major growth projects across Chile and the United States.
Through its new shareholding in Luca, Capstone will maintain investment exposure to future exploration potential at the Zacatecas site.
Capstone President and CEO Cashel Meagher said the sale streamlines the company’s portfolio at an ideal operational juncture while handing stewardship to an experienced regional operator.
“Cozamin has been an important part of our portfolio, providing stability and strong cash flows as Capstone has matured into a diversified copper producer,” Meagher said.
“The transaction optimises our portfolio and further strengthens our balance sheet, enabling us to redeploy capital into our 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.”
The deal is expected to close in the fourth quarter of 2026, pending customary closing conditions and regulatory clearances, including approvals from Mexican antitrust authorities and relevant stock exchanges.
The transaction requires no shareholder vote or external financing conditions.
