Luca Mining Acquires Capstone's Cozamin Mine in Mexico

Luca Mining (TSXV: LUCA,OTCQX:LUCMF) agreed on Monday (September 21) to acquire the 20-year-old Cozamin underground copper-silver mine in Mexico’s Zacatecas district from Capstone Copper (TSX:CS,ASX:CSC,OTCPL:CSCCF).

Under the definitive share purchase agreement, Luca will pay US$290 million upfront alongside up to US$95 million in deferred and contingent consideration.

The Cozamin operation accesses ore through two ramp declines and the San Roberto shaft. The site processes ore capable of handling 4,400 tons per day.

Crucially, the plant also retains an inactive zinc flotation circuit that Luca intends to evaluate for a potential restart to capitalize on improving base metal conditions.

Capstone heavily modernized the mine's surface infrastructure in 2022 by completing a paste backfill and filtered tailings system. The upgrades, alongside a new one-way underground haulage loop, were partially funded by a US$150 million silver stream agreement Capstone executed with Wheaton Precious Metals (TSX:WPM,NYSE:WPM) in December 2020.

Geologically, Cozamin taps into a highly productive belt of epithermal and mesothermal vein deposits. Mineralization remains open at depth and along strike across two principal structures: the primary Mala Noche Vein, which boasts a mapped strike length of 5.5 kilometers, and the higher-grade Mala Noche Footwall Zone discovered in 2010.

Historical estimates from December 2025 peg Cozamin’s measured and indicated resources at 17.5 million tons grading 1.29 percent copper and 44 grams per ton silver.

“We are acquiring a long-standing, cash-generating underground mine with established infrastructure, a strong operating history and significant remaining mineral potential,” Luca's CEO and Director Dan Barnholden said in the announcement. “The mine has consistently replaced depletion through nearly two decades of production, yet substantial portions of the mineralized systems remain open and underexplored.”

Luca plans to escalate exploration spending beyond the site's recent US$2 million annual budget, primarily aiming to extend Cozamin's operational life well past Capstone's historical 2030 mine plan.

The Cozamin purchase directly follows Luca’s definitive agreement last week to acquire the El Barqueño gold-silver-copper project in Jalisco state from Agnico Eagle Mines (TSX:AEM,NYSE:AEM).

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.