Luca Mining Strengthens Balance Sheet: Successfully Completes Debt Settlement and Finalizes Restructuring
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
Luca Mining Strengthens Balance Sheet: Successfully
Completes Debt Settlement and Finalizes Restructuring
Vancouver, British Columbia, 19 January 2024
Luca Mining Corp. (“Luca” or the “Company ”) (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: Z68) is
pleased to announce it has received conditional TSX Venture Exchange (“ TSXV”) approval and
closed a debt restructuring and debt transaction previously announced by news release dated
December 6, 2023.
Debt Settlement
The Company is pleased to announce it has closed its debt settlement (the “Debt Settlement ”) with
the Latapi Consultores, S.A. de C.V. (“Latapi”). Under the Debt Settlement, the Company has issued
an aggregate of 17,750,000 Shares to settle outstanding debt of CAD$11,029,817, comprising of (i)
CAD$3,042,317 of debt that the Latapi and the Company agreed to write off and (ii) CAD$7,987,500
of debt that has been settled in common shares of Luca (the “ Shares ”), at a price of CAD$0.45 per
Share. The Shares were issued to a syndicate of creditors with Latapi acting as agent on behalf of
the syndicate to negotiate the terms of the Debt Settlement. The debt was originally owed under
a loan facility to Accendo Banco, S.A. and assigned to Latapi acting on behalf of a syndicate of
creditors.
The Shares are subject to a four month plus one day hold period under applicable Canadian
securities laws. The Debt Settlement is subject to the receipt of final approval from the TSXV.
Debt Restructuring
The Company has completed its debt restructuring transaction with Trafigura Mexico, S.A. de C.V.
(“Trafigura ”) and its affiliate Urion Holdings (Malta) Limited (“Urion”). The Company has conditionally
converted a US$5,800,000 (the “ Principal Amount ”) outstanding loan into a non-interest bearing
three year term convertible debenture (the “ Convertible Debenture ”). Trafigura has conditionally
assigned the Principal Amount to Urion, such assignment to be perfected upon Urion being
included in the existing security arrangements between Luca and Trafigura (the “ Condition ”). The
Convertible Debenture has been signed and placed in escrow, to be released once the Condition
has been met. The Convertible Debenture will mature in three years from the date it is released
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
from escrow and made effective. Upon maturity or any time prior thereto, the Principal Amount is
convertible into Shares at a price of CAD$0.35 per Share. Under certain circumstances the
Company is permitted to make prepayments of the Principal Amount in cash, in accordance with
the terms of the Convertible Debenture.
Any Shares issued under the Convertible Debenture will be subject to a four month plus one day
hold period under applicable Canadian securities laws. The Convertible Debenture is subject to the
receipt of final approval from the TSXV.
The Company is pleased to advise that Trafigura has advanced an additional US$2,500,000 loan to
assist the Company in completing the mine optimization program at Campo Morado. The ultimate
goal of the optimization program is to enable Luca to deliver separate clean copper, zinc and lead
concentrates to Trafigura with substantially higher recoveries and concentrate grades.
Mike Struthers, Luca’s CEO stated: “The transactions described above substantially improve the
financial condition of the Company and to a certain extent reflect the growing confidence in the
Company’s operations. On the one hand Trafigura has agreed to exchange US$5,800,000 of
existing debt that was accruing interest into a non interest bearing Convertible Debenture payable
in three years, while also facilitating the mine enhancement at Campo Morado with an additional
US$2,500,000 loan, and on the other we have been able to remove approximately CAD$11,029,817
of loan liability from our balance sheet by the issuance of 17,750,000 shares, which works out to an
effective cost of approximately CAD$.61 per share. These are all very positive developments for
Luca from a cash flow and profitability perspective .”
About Luca Mining Corp.
Luca Mining (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a diversified Canadian mining
company with two 100%-owned producing mines in Mexico. The Company produces gold,
copper, zinc, silver and lead from these mines that each have 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 optimisation program aimed at increasing efficiency and cashflow. In Q1
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
2024, the program has already started generating significant improvements in recoveries and
grades.
The Tahuehueto mine is a new underground gold mine in Durango State, Mexico, within the Sierra
Madre Mineral Belt which hosts numerous producing and historic mines along its trend. The
Company has increased its mill capacity at Tahuehueto to 1,000 tonnes per day. Key test work and
throughput expansion is underway to increase production by 2 H 2024.
The Company expects its operations to start generating positive free cash flow in 2024. Luca
Mining is focused on growth with the aim of maximizing shareholder returns.
For more information, please visit: www.lucamining.com
On Behalf of the Board of Directors
(signed) “Mike Struthers”
Mike Struthers, CEO and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Luca declared commercial production at Campo Morado prior to completing a feasibility study
of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that
Luca’s production decision has been made without a comprehensive feasibility study of established reserves such that
there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical
risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.
Luca has completed a preliminary economic assessment (“PEA”) mining study on the Campo Morado mine that
provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral
resources (see news releases dated November 8, 2017, and April 4, 2018).
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-
looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities
laws. Forward Looking Information includes, but is not limited to, disclosure regarding the planned program to improve
mining operations at Campo Morado; and other possible events, conditions or financial performance that are based on
assumptions about future economic conditions and courses of action; the timing and costs of future activities on the
Company’s properties, such as production rates and increases; success of exploration, development and bulk sample
processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In
certain cases, Forward-Looking Information can be identified using words and phrases such as “plans,” “expects,”
“scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or variations of such words and phrases. In preparing
Luca Mining Corp.
Suite 410, 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
the Forward-Looking Information in this news release, the Company has applied several material assumptions,
including, but not limited to, that the current exploration, development, environmental and other objectives concerning
the Campo Morado Mine and the Tahuehueto Project can be achieved; that the program to improve mining operations
at Campo Morado will proceed as planned; the continuity of the price of gold and other metals, economic and political
conditions, and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other
factors which may cause the actual results, performance, or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There
can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance
on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release
publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information about Luca Mining Corp., please contact:
Sophia Shane
Director of Corporate Development
or
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071