BASE METALS

Capstone sells Minto for US$20M

Divestiture allows Capstone to focus on core operations, weigh strategic options for Santo Domingo

Staff Reporter

This article is 5 years old. Images might not display.

It said Pembridge Resources (LSE:PERE) had agreed to buy the asset for US$20 million (C$26.76 million) in instalments. The sale is subject to certain provisions, including the mine reaching commercial production.

Minto is about 240km north of Whitehorse and has been on care and maintenance since October 2018.

The mine has proven and probable reserves of 3.9 million tonnes grading 1.67% copper and 0.41g/t gold.

Pembridge separately said it had secured a $10 million investment from New York-based private equity firm Copper Holdings and asset manager Lion Point Capital to fund the reopening of the mine. It expects to restart commercial production at Minto during the December quarter.

Following the Minto sale, Capstone said it would shift its focus on its core operations, including completing the strategic process for its 70%-owned Santo Domingo copper-iron project in Chile.

Its other assets comprise the producing Pinto Valley mine in Arizona, USA, and the Cozamin polymetallic mine in Zacatecas state, Mexico.

Capstone's (TSX: CS) shares closed in the black in Toronto on Tuesday, adding C2c or 3.77% to 55c. The stock is down 5% over the past five months and 51% over the past year. The company has a market capitalisation of $219.78 million.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.