Luca Mining to Acquire Mexico's Cozamin Copper-Silver Mine for Up to US$385 Million

en.Wedoany.com Reported - On September 21, Canada's Luca Mining and Capstone Copper signed a definitive share purchase agreement to acquire a 100% interest in the Cozamin underground copper-silver mine in Zacatecas, Mexico. The first-stage consideration is US$290 million, comprising US$275 million in cash and US$15 million in Luca Mining shares payable at closing; in addition, there is US$35 million in deferred consideration and up to US$60 million in contingent payments linked to the copper price, bringing the total consideration to as much as US$385 million.

Cozamin is an operating underground mine that has been in continuous operation for 20 years since commercial production began in August 2006. The mine is accessed via two declines and the San Roberto shaft and uses longitudinal and transverse long-hole stoping and mechanized backfill mining methods. Ore is processed through crushing, grinding and sequential flotation, with the processing plant having a design capacity of up to 4,400 tonnes per day and an average throughput of approximately 3,670 tonnes per day over the past five years, producing copper concentrate and zinc concentrate separately and recovering silver.

As of December 31, 2025, Capstone's disclosed historical resources include 17.5 million tonnes of measured and indicated resources averaging 1.29% copper, 44 g/t silver, 1.22% zinc and 0.45% lead; plus 13.5 million tonnes of inferred resources averaging 0.72% copper and 39 g/t silver. Historical proven and probable reserves are 6.7 million tonnes averaging 1.40% copper and 42.2 g/t silver. Luca Mining plans to re-conduct resource verification, update mineral resource and reserve estimates, and prepare a new mine plan following completion of the transaction.

The acquisition is accompanied by a US$300 million financing package. This includes a US$110 million private placement of subscription receipts on a bought-deal basis, a US$40 million directed private placement, a US$125 million senior secured acquisition loan and a US$25 million new silver stream agreement. The US$125 million loan is provided by Taurus and Macquarie Bank with a four-year term; the new silver stream is provided by Wheaton, under which Luca Mining will deliver an additional 15% of refined silver on top of the existing silver stream until a cumulative delivery of 500,000 ounces is reached.

The transaction is expected to close in the fourth quarter of 2026, subject to obtaining approvals from Mexico's Federal Economic Competition Commission, the TSX Venture Exchange and other relevant authorities. Following completion, Luca Mining also plans to evaluate increasing the proportion of long-hole mining, improving utilization of existing infrastructure, and studying the restart of the existing zinc flotation circuit. The company will file an NI 43-101 technical report supporting Cozamin's historical resource and reserve data within 180 days of the announcement.