Mining
Friday, September 6th, 2024 3:21 pm EDT
Key Points
- Private Placement Offering: Luca Mining Corp. has entered into an agreement for a private placement of up to 19 million LIFE units at 45 cents each, aiming to raise $8.55 million for its projects.
- Use of Proceeds: The funds raised will be used for the Campo Morado improvement program, exploration drilling at both Campo Morado and Tahuehueto, and the commissioning of the Tahuehueto mill.
- No Hold Period for LIFE Units: The LIFE units issued under the listed issuer financing exemption will not be subject to a hold period under Canadian securities laws. The offering is expected to close around September 26, 2024, pending necessary approvals.
Luca Mining Corp. has entered into an agreement with Stifel to act as lead agent and sole bookrunner, for and behalf of a syndicate of agents, in connection with a best efforts private placement of up to 19 million units of the company at a price of 45 cents per LIFE unit for aggregate gross proceeds of $8.55-million, with the LIFE units to be issued pursuant to the listed issuer financing exemption (as defined herein).
Each LIFE unit will consist of one common share and one-half common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share for a period of 18 months following the closing date of the offering at an exercise price of 60 cents, subject to adjustment in certain events.
The net proceeds from the offering are expected be used for continuing work on the Campo Morado improvement program, exploration drilling at both Campo Morado and Tahuehueto, commissioning of the Tahuehueto mill and general corporate purposes.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 — Prospectus Exemptions, the LIFE units will be offered for sale to purchasers resident in Canada and/or other qualifying jurisdictions, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106. Because the offering is being completed pursuant to the listed issuer financing exemption, the LIFE units issued pursuant to the offering will not be subject to a hold period, pursuant to applicable Canadian securities laws. There is an offering document related to the offering that can be accessed under the company’s issuer profile on SEDAR+ and on the company’s website. Prospective investors should read the offering document before making an investment decision.
The offering is scheduled to close on or about Sept. 26, 2024, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
About Luca Mining Corp.
Luca Mining is a diversified Canadian mining company with two 100-per-cent-owned producing mines in Mexico. The company produces gold, copper, zinc, silver and lead from these mines, with each having considerable development and resource upside.
The Campo Morado mine is an underground operation located in Guerrero state, a prolific mining region in Mexico. It produces copper-zinc-lead concentrates with precious metals credits. It is currently undergoing an optimization program, which is already generating significant improvements in recoveries and grades, efficiencies, and cash flows.
The Tahuehueto gold-silver mine is a new underground operation in Durango state, Mexico, within the Sierra Madre mineral belt, which hosts numerous producing and historical mines along its trend. The company is commissioning its mill capacity to greater than 1,000 tonnes per day, and key testwork and production ramp-up are under way to increase production in the second half of 2024.
Qualified person
The technical information contained in this news release has been reviewed and approved by Chris Richings, vice-president of technical at Luca Mining, as the qualified person for the company, as defined in NI 43-101.
We seek Safe Harbor.
