Capstone achieves net cash position with $150M received from Wheaton
(Kitco News) - Capstone Mining (TSX:CS) announced Friday that it has closed the previously announced precious metals purchase agreement with Wheaton Precious Metals.
According to the company, all conditions to complete the stream agreement have been fulfilled and Capstone has received $150 million from Wheaton for 50% of the silver production until 10 million ounces have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the company’s Cozamin mine in Zacatecas, Mexico.
“With a current net cash position, this transaction gives Capstone one of the strongest balance sheets amongst its peers,” said President and CEO Darren Pylot. “Additionally, we are expecting around one billion dollars of after-tax operating cash flow over the next three years in the current $4.00 copper price environment. We look forward to strengthening our partnership with Wheaton as we continue advanced discussions for a potential gold stream on Santo Domingo.”
Capstone Mining is a Canadian base metals mining company, focused on copper. The company’s two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 70% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, in partnership with Korea Resources, as well as a portfolio of exploration properties.