Transaction generates AUD $592.8 million
NEW YORK, April 11, 2024 /PRNewswire/ -- Orion Resource Partners LP, a global investment firm specializing in metals and materials, has announced that three funds advised by Orion (collectively, "Orion") have collectively sold an 8.3% stake in Capstone Copper Corp. ("Capstone") (: CS; ASX: CSC), a premier global producer operating across the Americas, for gross proceeds of approximately AUD $592.8 million. Following the transaction, Orion will continue to remain one of the largest shareholders in Capstone, with a 12% stake.
Orion's secondary sale was the first transaction under Capstone's recent ASX listing and attracted several new blue-chip investors including Australian superannuation funds, large institutional funds and Asian resource funds to Capstone's shareholder register. The transaction is expected to position the company to target inclusion in the ASX300 and ASX200 indices.
The successive stake sell-down transactions, reducing Orion's stake from 32% in 2022 to 12% today, have enabled the diversification of Capstone's shareholder base and introduced global, blue-chip institutional investors to its register.
The transaction highlights Orion's partnership with Capstone to create a leading copper producer in the Americas with a strong management team and high-quality assets. Capstone has continued its successful transformation from a private company into a leading global copper player with strong sustainability credentials that is dual listed on the TSX and ASX. Working together, Orion and Capstone have completed the largest offering by a Canadian company in the Australian market on record, and the second largest block trade on the ASX in the last 10 years for a mining company. Since the merger in 2022, Capstone's share price has increased 27%.
Orion's partnership with Capstone Copper began when Orion backed the founding of Mantos Copper by John MacKenzie, a senior industry executive, in 2015 via the acquisition of two producing copper mines in Chile (Mantos Blancos and Mantoverde) with untapped and unrealized upside at a low point in the copper cycle. Working closely with the Mantos Copper leadership team, Orion was able to successfully restructure operating costs, extend mine lives, and permit and fully finance development projects at both mines. In 2022, Capstone Mining (OTC:) Corp. and Mantos Copper merged to form Capstone Copper, with a market capitalization of c. $4 billion. Mantos Blancos and Mantoverde underpin Capstone's strong asset portfolio today.
In addition, with Orion's support, Capstone has implemented and driven significant sustainability initiatives, supporting the company's commitment to the highest standards of sustainability. Capstone was awarded the Copper Mark last year at its Chilean operations, Mantoverde and Mantos Blancos.
Istvan Zollei, Managing Partner of Orion Resource Partners LP commented: "This successful cross-border transaction marks several significant milestones for Capstone and mining markets. We are delighted to have helped oversee the emergence of Capstone as a leading industry player. Today's transaction further evidences the strength of Orion's partnership as an investor of choice for the world's premier metals producers."
John MacKenzie, a Founder and Chief Executive Officer of Capstone, added: "Orion has been a responsible and engaged investment partner to Capstone since the creation of the company in the public merger in 2022, and before that, when its funds initially invested in Mantos Copper in 2015. We are excited to continue delivering transformational and sustainable growth with the support of our existing and new shareholders."
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About Orion Resource Partners LP
Orion Resource Partners LP is a global investment firm specializing in the metals and materials critical to sustainable economic growth and the energy transition, with more than $8bn AUM and a team of more than 80 professionals across six global offices. Orion has successfully invested across the metals and materials value chain for over a decade, operating complementary investment strategies spanning the full liquidity spectrum, finding and capturing opportunities driven by the long-term trends of global decarbonization, the constrained supply of critical resources, and advancements in industrial technologies. Orion is a signatory to the UN PRI and the IFC Performance Standards on Environmental and Social Sustainability. www.orionrp.com
About Capstone Copper
Capstone Copper Corp. is an Americas-focused copper mining company headquartered in Vancouver, Canada. It owns and operates the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta (LON:) region, Chile, and 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, it owns the fully permitted Santo Domingo copper-iron-gold project in Chile, as well as a portfolio of exploration properties in the Americas. Capstone is committed to creating a positive impact in the lives of its people and local communities, while delivering compelling returns to investors by responsibly producing copper to meet the world's growing needs. www.capstonecopper.com
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