Luca Mining Corp. entered into a definitive agreement to buy the Cozamin copper-silver-zinc-lead mine, located in Zacatecas, Mexico, from Capstone Copper Corp. for up to $385 million. Under the terms of the transaction, Capstone will receive $275 million in upfront cash, $15 million in Luca shares to be issued to Capstone at closing, $35 million in deferred consideration to be received on the first anniversary of closing, and up to $60 million in contingent cash consideration tied to annual average copper prices.
Luca said the transaction is expected to provide increased cash flow to support future growth initiatives, including the recently announced acquisition of the El Barqueño project from Agnico Eagle, the expansion at Campo Morado and other strategic opportunities. The transaction will expand Luca’s exposure to copper and possibly zinc. The company said it exploring the potential restart of an existing zinc flotation circuit.
“We are acquiring a long-standing, cash-generating underground mine with established infrastructure, a strong operating history and significant remaining mineral potential, while materially increasing our production and cash flow profile,” said Luca CEO Dan Barnholder. “We are also very pleased to welcome a number of significant new shareholders to the Luca register, including Capstone, Wheaton and Taurus, with a notable equity backstop being provided by Trafigura. We are particularly excited about the exploration potential at Cozamin. The mine has consistently replaced depletion through nearly two decades of production, yet substantial portions of the mineralized systems remain open and underexplored.
“Our objective will be to build on that foundation, prepare updated Mineral Resources and Mineral Reserves, and extend the mine life well beyond the historical 2030 mine plan,” he continued. “The transaction also strengthens Luca’s ability to fund its broader growth strategy. With Cozamin’s cash flow alongside our existing operations, we expect to have greater financial flexibility to advance El Barqueño, the Campo Morado Expansion and other opportunities while continuing to invest in exploration and operational improvements across the portfolio.”
The transaction is expected to close in Q4 2026, subject to the completion of customary conditions and regulatory approvals.
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