Luca Mining has agreed to acquire the Cozamin Mine in Zacatecas, Mexico, from Capstone Copper for $290 million upfront plus as much as $95 million in deferred and contingent consideration, creating a transaction with a potential total value of $385 million.
Cozamin is an operating underground copper-silver mine with approximately 20 years of continuous production.
Luca expects the acquisition to more than double its near-term production profile while substantially increasing exposure to copper and silver.
Based on consensus estimates cited by Luca, the combined company is expected to produce approximately $598 million of net revenue and $223 million of operating cash flow in 2027.
That compares with Luca’s 2025 net revenue of $177 million and operating cash flow of $37 million.
The company also cited estimates showing operating cash flow per share increasing approximately 93%, from $0.22 to $0.42, following the addition of Cozamin.
Cozamin has a historical mine plan extending through 2030, although Luca has not adopted that plan and intends to conduct its own resource validation, exploration and mine planning after closing.
The mine’s existing processing plant has capacity of up to 4,400 tonnes per day and can produce separate copper and zinc concentrates with silver credits.
Luca sees significant potential to extend mine life through additional drilling and increased exploration spending.
As of December 31, 2025, historical estimates cited by Luca included 17.5 million tonnes of Measured and Indicated Resources grading 1.29% copper and 44 grams per tonne silver, plus 13.5 million tonnes of Inferred Resources grading 0.72% copper and 39 grams per tonne silver.
To finance the acquisition, Luca has assembled a $300 million package.
That includes a $110 million bought-deal private placement, a $40 million concurrent private placement from Wheaton Precious Metals and Taurus Mining Finance Fund No. 3, a $125 million senior secured acquisition facility from Taurus and Macquarie, and a $25 million additional silver stream commitment from Wheaton.
Trafigura has also provided an equity backstop of up to $75 million.
The deal adds another major operating asset to Luca’s Mexico-focused portfolio and could generate additional cash flow for projects including El Barqueño and the Campo Morado expansion.
KEY QUOTES:
“The acquisition of Cozamin represents a transformational step for Luca. 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.”
Dan Barnholden, CEO and Director of Luca Mining
