11:34 AM EDT, 07/08/2025 (MT Newswires) -- (Adds comment and updates shares.)

Capstone Copper ( CSCCF ) on Tuesday said it secured an environmental permit for an expansion project at the Mantoverde mine in Chile.

The environmental permit from the Atacama Regional Environmental Assessment Commission is the only major permit required to develop the Mantoverde Optimized project, Capstone said. The project is expected to cost US$150 million and provide additional copper production of 20,000 tonnes per year.

"We have been eagerly awaiting this permit and are excited to begin construction, pending required board approvals, to increase our throughput capacity by over 40% at very low capital intensity," said chief executive Cashel Meagher.

The company said the project will expand the throughput of the Mantoverde mine's sulfide concentrator to 45,000 ore tonnes per day from 32,000 tpd.

The project will also extend the mine life to 25 years from 19 years, Capstone said.

National Bank of Canada maintained its outperform rating and $8.75 price target on the company's shares following the grant of the permit.

The bank said the rating is based on its positive long-term growth outlook for the company as it sees expansion opportunities and potential cost savings through the MV-SD district integration plan, as well as several near-mine exploration opportunities.

Capstone shares were last seen down $0.075 to $8.365 on the Toronto Stock Exchange.

Price: 8.37, Change: -0.07, Percent Change: -0.83