Capstone Copper to sell Mexican mine to Luca Mining for $385M
2026-09-22 11:14:55 [Print]
Capstone Copper is selling its Cozamin copper-silver-zinc-lead mine in Mexico to Luca Mining for up to $385 million as it redirects capital toward larger copper growth projects in Chile and the US.
The deal announced Monday includes $275 million in cash at closing and $15 million in Luca shares, plus $35 million in deferred consideration and as much as $60 million in payments linked to future copper prices. The transaction is expected to close in the fourth quarter, subject to regulatory approvals and other customary conditions.
For Luca, Cozamin adds a third producing Mexican mine to a portfolio that includes the Campo Morado polymetallic operation in Guerrero state and the Tahuehueto gold-silver mine in Durango state. Luca said Cozamin is expected to more than double its 2027 production profile based on current consensus estimates while increasing its exposure to copper and silver.
Cozamin, in Zacatecas state, has operated continuously under Capstone since late 2006, when commercial production began at 1,000 tonnes per day. The mine had three years of reserves at the time, but exploration subsequently extended its mine life to 2030.
From 2023 through 2030, Cozamin was forecast to produce an average of 20,000 tonnes of copper and 1.3 million oz. of silver annually at C1 costs of $1.51 per payable lb. of copper. Production was projected to average 24,000 tonnes of copper and 1.7 million oz. of silver annually from 2023 through 2027, at C1 costs of $1.46 per payable lb.
Luca plans an extensive resource validation and exploration program after closing aimed at extending Cozamin's mine life and demonstrating its longer-term cash-flow potential.
The deal announced Monday includes $275 million in cash at closing and $15 million in Luca shares, plus $35 million in deferred consideration and as much as $60 million in payments linked to future copper prices. The transaction is expected to close in the fourth quarter, subject to regulatory approvals and other customary conditions.
For Luca, Cozamin adds a third producing Mexican mine to a portfolio that includes the Campo Morado polymetallic operation in Guerrero state and the Tahuehueto gold-silver mine in Durango state. Luca said Cozamin is expected to more than double its 2027 production profile based on current consensus estimates while increasing its exposure to copper and silver.
Cozamin, in Zacatecas state, has operated continuously under Capstone since late 2006, when commercial production began at 1,000 tonnes per day. The mine had three years of reserves at the time, but exploration subsequently extended its mine life to 2030.
From 2023 through 2030, Cozamin was forecast to produce an average of 20,000 tonnes of copper and 1.3 million oz. of silver annually at C1 costs of $1.51 per payable lb. of copper. Production was projected to average 24,000 tonnes of copper and 1.7 million oz. of silver annually from 2023 through 2027, at C1 costs of $1.46 per payable lb.
Luca plans an extensive resource validation and exploration program after closing aimed at extending Cozamin's mine life and demonstrating its longer-term cash-flow potential.
Lead Conc. Pb 50%min, Ag 700g/dt min EXW China Ag payable
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China primary lead producers' operating rate statistics by province by month
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