Luca buys Capstone's Cozamin copper mine in Mexico for $385m
Canadian mining company focused on gold, copper, zinc, lead and silver in Mexico, Luca Mining Corporation, has entered into a share purchase agreement with TSX- and ASX-listed copper producer Capstone Copper Corporation to acquire 100% of the Cozamin mine for $290-million upfront and $95-million in a deferred consideration.
Cozamin is an existing underground copper and silver mine with a 20-year track record of continuous production. The acquisition is expected to more than double Luca's 2027 production profile, increase cashflow generation and increase the company's exposure to copper and silver.
The deal also expands Luca's operating footprint in Zacatecas - one of Mexico's most productive mining regions.
Luca intends to undertake an extensive resource validation and exploration programme after closing the acquisition, with the aim of extending the Cozamin mine life. Luca does not plan to adopt the historical mine plan, rather, it will review historical technical data and develop an updated mine plan.
Luca expects to have its operating cashflow increase to $223-million during 2027 with the addition of the Cozamin mine, compared with the group's operating cash flow of $37-million in 2025.
Incremental cashflow from Cozamin is expected to support future investment in Luca's recently acquired El Barqueño from Agnico Eagle Mines, as well as the Campo Morado Expansion project.
For Capstone, the net proceeds from the transaction will support its balance sheet and provide financial flexibility to support its growth pipeline in the US and Chile.
The consideration comprises $275-million in cash upfront, $15-million worth of Luca shares to be issued to Capstone, $35-million on the first anniversary of the deal closing and up to $60-million in contingent cash tied to yearly average copper prices.
"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," says Capstone CEO and president Cashel Meagher.
The transaction is expected to close in the fourth quarter of the year.
