Canada's Capstone And Chile's Mantos Copper Are Set To Merge.

Canada's Capstone Mining And Chilean-focused Mantos Copper, run by Audley Capital Advisors and Orion Mine Finance, are merging to create a new Copper producer focused on the Americas, It's called Capstone Copper.

The new mining company, which will trade on the Toronto Stock Exchange, will have a copper production base of more than 175,000 tonnes in 2021, with combined reserves of 4.9 million tonnes, the companies said.

Capstone Copper, based in Vancouver, British Columbia, will operate in the U.S. (Pinto Valley), Mexico (Cozamin) and Chile (Mantos Blancos, Mantoverde and Santo Domingo).

The plan is to increase the combined company's copper production by 45 per cent to 260,000 tonnes a year by 2024 through a full-scale financing programme currently under way by Mantos Blancos and ongoing construction by Mitsubishi Materials, in which it holds a 30 per cent stake.

Under the terms of the deal, each current Capstone mining shareholder will receive one share of the new company for each share held by Capstone Mining. Current Capstone owners will own 61 per cent of the new company, while Mantos shareholders will own 39 per cent.