Published: December 3, 2021 | Share This

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Canadian base metals mining company Capstone Mining has agreed to merge with copper-producing company Mantos Copper to create a new company called Capstone Copper.

Under the deal, each Capstone shareholder will receive one newly issued Capstone Copper share per Capstone share, while the existing Mantos shareholders will continue to retain Capstone Copper shares.

Once the deal concludes, former Capstone shareholders will hold 60.75 percent stake in the new company, while Mantos shareholders will own the remaining 39.25 percent interest.

With a diversified portfolio of operating assets focused on the Americas, the deal allows to create the new company as a premier copper producer with a significant pipeline of near-term organic growth opportunities.

The new company will have a combined 2021 copper production base of more than 175,000 tonnes of copper from four mines situated in districts with deep mining history.

It also consists of combined contained copper reserves of 4.9 million tonnes, as well as contained copper measured and indicated resources (M&I resources) of 5.5 million tonnes.

Based in Vancouver of British Columbia, Capstone Copper will conduct operations in the Pinto Valley of the U.S., Cozamin in Mexico, as well as Mantos Blancos, Mantoverde, and Santo Domingo in Chile.

With Mantos Blancos currently boosting up and construction underway at Mantoverde, Capstone Copper aims to achieve the production growth of 45 percent by 2024 to 260,000 tonnes of copper per year from fully-financed projects.

The new company is also expected to achieve a production growth of up to 380,000 tonnes of copper per annum with the Santo Domingo development.

Upon the completion of the deal, Mantos executive chairman and founder John MacKenzie will serve as CEO for the new company while Capstone president and CEO Darren Pylot as executive chair of Capstone Copper.

“This transaction is in-line with our strategic vision of growing a multi-asset and sustainable copper business in the Americas. The combination of these two companies provides transformational near-term growth and further deepens our bench strength, particularly with respect to mine building, operational and leadership experience. I’m excited to join forces with John MacKenzie in one integrated team. John brings impressive global mining experience and will be a great addition to further enhance our culture of operational excellence across the combined portfolio,” said Darren Pylot.

“I would also like to welcome Cashel Meagher as president and COO. Cashel is a proven mine builder and operator with extensive experience in South America. He is an innovative leader and will head our plan for continuous improvement. I would like to thank Brad Mercer (SVP & COO) who has been an instrumental leader in the organization. He will now lead key growth projects in North America as SVP, Strategic Projects,” added Pylot.

“I am delighted by the opportunity to lead Capstone Copper at this exciting time and to help deliver on a truly transformational growth story. I am incredibly passionate about helping to build a Canadian-based copper champion from a solid foundation of long-life assets with a strong presence in South America, having spent over ten years of my professional mining career in Chile,” said John MacKenzie.

“Over the past decade, I’ve closely monitored the progress at Santo Domingo and I see meaningful district scale synergies with Mantoverde as well as further expansion opportunities throughout the combined portfolio. I firmly believe that copper is an essential component of the global economy’s transition to net zero, and Capstone Copper will play an important role in its delivery in a sustainable and responsible manner,” added MacKenzie.

Source: NS Energy

About Capstone Mining
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Its two producing mines are the Pinto Valley copper mine located in Arizona and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 100 percent of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in the Atacama region, Chile, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on the optimization of operations and assets in politically stable, mining friendly regions, centred in the Americas.They are committed to the responsible development of its assets and the environments in which they operate. The company is headquarted are in Vancouver, Canada.

To stop by Capstone’s website, CLICK HERE

About Mantos Copper
Mantos Copper is a copper-producing company that engages in the exploration, development, extraction and processing of sulphide and oxide ores and the production and sale of London Market Exchange Grade “A” copper cathodes and clean copper concentrates, with gold and silver by-products from two mining assets, Mantoverde and Mantos Blancos located in northern Chile. Mantos Copper is owned by funds managed by Orion Resource Partners, and Audley Mining Advisors Ltd. Orion is a global alternative investment management firm that specializes in institutional metals and mining investment strategies in the base and precious metals space. Audley Mining Advisors is a special purpose vehicle owned by the founders of Mantos Copper. Mantos Copper owns 99.99 percent of Mantos Blancos and 69.99 percent of Mantoverde, with Mitsubishi Materials Corporation owning the remaining 30.00 percent of Mantoverde.

To stop by Mantos’ website, CLICK HERE

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