Capstone Copper has signed a definitive agreement with Luca Mining to sell its Cozamin copper-silver-zinc-lead mine in Zacatecas, Mexico, for up to $385m (C$540.06m).
Capstone will receive $275m in cash at closing, which may be adjusted for standard transaction adjustments.
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In addition, it will receive $15m in Luca Mining shares at the time of closing and $35m in deferred consideration to be paid on the first anniversary following completion of the sale.
The agreement also includes up to $60m in contingent payments, dependent on average annual copper prices.
The company stated that proceeds from the transaction will reinforce its balance sheet and increase financial flexibility to support its growth pipeline.
Capstone is not required to seek shareholder approval or meet any financing conditions to complete the sale.
Cozamin is an underground mine located 3.6km north-north-west of Zacatecas, producing copper and silver, along with zinc and lead as supplementary products.
It began commercial production towards the end of 2006 un...