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Capstone and Mantos Copper combine to create Capstone Copper

Published by
Global Mining Review,


Capstone Mining Corp. and Mantos Copper (Bermuda) Ltd have entered into a definitive agreement to combine pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the transaction). Upon completion of the transaction, Mantos will be renamed Capstone Copper Corp., and will remain headquartered in Vancouver, British Columbia. Capstone Copper will apply to the Toronto Stock Exchange to list the Capstone Copper shares on the Toronto Stock Exchange. Pursuant to the agreement, each Capstone shareholder will receive one newly issued Capstone Copper share per Capstone share (the exchange ratio) and the existing Mantos shareholders will continue to hold Capstone Copper shares. Upon completion of the transaction, former Capstone and Mantos shareholders will collectively own 60.75% and 39.25% of Capstone Copper, respectively, on a fully-diluted share basis.

Following completion of the transaction:

  • John MacKenzie, Executive Chairman and Founder of Mantos, will become the CEO of Capstone Copper.
  • Darren Pylot, President and CEO and Director of Capstone, will become Executive Chair of Capstone Copper.
  • The new board of directors will be composed of seven directors, including the Executive Chair, CEO and Lead Independent Director, George Brack.
  • Giancarlo Bruno, CEO of Mantos, will be responsible for the Chilean operations of the combined business.

Concurrent with the announcement of the transaction:

  • Cashel Meagher, formerly SVP and COO of Hudbay Minerals Inc., will become President and COO of Capstone, effective 5 January 2022.
  • Brad Mercer, SVP and COO of Capstone, will transition to a newly created role as SVP, Strategic Projects, effective 5 January 2022.

The transaction will establish Capstone Copper as a premier copper producer with a diversified portfolio of high-quality, long-life operating assets focused in the Americas with an extensive pipeline of near-term organic growth opportunities.

Pylot commented: “This transaction is in-line with our strategic vision of growing a multi-asset and sustainable copper business in the Americas. The combination of these two companies provides transformational near-term growth and further deepens our bench strength, particularly with respect to mine building, operational and leadership experience. I’m excited to join forces with John MacKenzie in one integrated team. John brings impressive global mining experience and will be a great addition to further enhance our culture of operational excellence across the combined portfolio.”

“I would also like to welcome Cashel Meagher as President and COO. Cashel is a proven mine builder and operator with extensive experience in South America. He is an innovative leader and will head our plan for continuous improvement. I would like to thank Brad Mercer (SVP & COO) who has been an instrumental leader in the organisation. He will now lead key growth projects in North America as SVP, Strategic Projects. Copper is increasingly being recognised as a critical metal to a greener future, and we continue to strive to be a significant producer of responsible copper while strengthening communities by building resilient operations,” continued Pylot.

MacKenzie added: “I am delighted by the opportunity to lead Capstone Copper at this exciting time and to help deliver on a truly transformational growth story. I am incredibly passionate about helping to build a Canadian-based copper champion from a solid foundation of long-life assets with a strong presence in South America, having spent over ten years of my professional mining career in Chile. Over the past decade, I’ve closely monitored the progress at Santo Domingo and I see meaningful district scale synergies with Mantoverde as well as further expansion opportunities throughout the combined portfolio. I firmly believe that copper is an essential component of the global economy’s transition to net zero, and Capstone Copper will play an important role in its delivery in a sustainable and responsible manner.”

Read the article online at: https://www.globalminingreview.com/finance-business/01122021/capstone-and-mantos-copper-combine-to-create-capstone-copper/

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Copper mining news South American mining news