Capstone Mining completes Mantos merger, becomes Capstone Copper

Following receipt of all regulatory approvals, Capstone Mining (TSX: CS) has successfully completed its previously announced business combination with Mantos Copper, creating a new Americas-focused copper producer named Capstone Copper Corp.

The merger agreement stipulates that each Capstone common share be exchanged for one share of Capstone Copper. Following completion, Capstone shareholders would have a 60% interest in the new company, while those who held Mantos shares would own about 40%.

As previously agreed, Mantos executive chairman John MacKenzie will lead the combined company as its chief executive, while Capstone boss Darren Pylot takes the role of executive chairman.

Mantos, which was run by British investment firm Audley Capital Advisors and Orion Mine Finance, has been advancing the Mantoverde and Mantos Blancos copper mines that it acquired from Anglo American in 2015.

Mantoverde is an open pit mine located in the Atacama region of Chile capable of producing 60,000 tonnes of copper cathodes a year. An expansion of the existing oxide operation is being proposed, which could increase its annual production to 110,000 tonnes of copper beginning in 2023 through mining and processing the sulphide ore

.Mantos Blancos, also an open pit mine, is located in the Antofagasta region. It currently mines both sulphide and oxide ores, from which 40,000-50,000 tonnes of copper in concentrates and cathodes per year. are produced. An expansion of the sulphide concentrator was completed last year, which would increase its throughput capacity and extend the asset life until 2035.

Technical reports for both projects were filed by Capstone earlier this year. These Chilean assets will now be added to Capstone’s project portfolio, which already includes the Pinto Valley copper mine in Arizona and the Cozamin copper-silver mine in Zacatecas, Mexico.