Capstone Copper to sell Mexican mine to Luca Mining for up to $385M

AI desk brief

Capstone Copper will sell its Cozamin copper-silver-zinc-lead mine in Mexico to Luca Mining for up to $385 million, including $275 million cash at closing, $15 million in Luca shares, $35 million deferred, and up to $60 million tied to LME copper prices in 2027-29. Capstone said the divestiture improves balance-sheet flexibility as it focuses on larger growth projects in Chile and Arizona, while Luca said Cozamin should more than double its 2027 production profile and expand its copper/silver exposure.

The contingent payment only has value if copper averages at least $7/lb from 2027 onward, with the maximum $20 million annual payout requiring $8.51/lb or higher. The deal still needs regulatory approvals in Mexico and exchange approvals, but not shareholder approval or financing.