LUCA Mining Closes In on $385M Capstone Copper Acquisition

Luca Mining (TSXV: LUCA) has agreed to acquire Capstone Copper's (TSX: CS) Cozamin mine in Zacatecas, Mexico for up to $385 million. The transaction includes $275 million in cash at closing, $15 million in Luca shares, $35 million payable one year later, and up to $60 million in copper-price-linked payments.

The contingent payments make part of Capstone's final price dependent on copper staying considerably higher. Luca would owe annual payments in 2027 through 2029 when the average LME cash copper price reaches at least $7.00 per pound, rising to $20 million for a year averaging at least $8.51 per pound.

Benchmark three-month LME copper traded around $14,654 per metric tonne, or roughly $6.65 per pound, on Monday, according to Reuters.