VANCOUVER, BC, Dec. 21,
2023 /CNW/ - Luca Mining Corp. ("Luca" or the
"Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: Z68) is pleased
to announce that it has closed the CAD $2
million non-brokered private placement (the "Private
Placement") announced on December 06,
2023. In total, the Company sold an aggregate of 5,714,286
units of the Company (each, a "Unit") at a price of CAD$0.35 per Unit for gross proceeds of
CAD$2 million. In addition to the
base CAD$2 million funding, Luca has
reserved a 25% over subscription option on the Private
Placement.
Net proceeds of the Private Placement will be used towards
further advancing the optimization program at Campo Morado as well as for general working
capital purposes. Campo
Morado is a copper-gold-silver-zinc mine within the prolific
Guerrero Mineralized Belt in southern Mexico, a region well-known for its rich
deposits of gold, silver, copper, lead, iron, and zinc. The
optimization program initiated by the Company at Campo Morado has transformed the performance
of the mine in terms of recoveries, grades and operating
efficiencies, and, as a result, Luca expects to see substantial
increases in revenue. This long life mine is expected to generate
consistent, positive free cash flow in 2024 and beyond with
significant upside potential.
Each Unit consists of one common share of the Company (a
"Share") and one half of one transferable share purchase warrant
(each whole, a "Warrant"). Each Warrant entitles the holder thereof
to acquire one additional common share (a "Warrant Share") at a
price of CAD $0.50 per Warrant Share
until December 18, 2025 (the "Expiry
Date"), subject to an acceleration clause. If the closing price of
the Shares on the TSX Venture Exchange (the "TSXV") or such other
stock exchange as Luca is listed on exceeds CAD $0.90 for 15 consecutive trading days, the
Company will earn the right, providing notice (the "Acceleration
Notice") to the warrant holders via a news release or written
notice, to accelerate the Expiry Date of the Warrants to
4:00pm (Vancouver time) on the 30th day from the date
of the Acceleration Notice (the "Acceleration Expiry Date"). If the
Company provides Acceleration Notice, all Warrants that are not
exercised by the Accelerated Expiry Date will expire. In
consideration of its efforts in arranging the Private Placement,
Luca paid an 8% finder's fee satisfied by issuing 680,851 Shares to
a finder.
All securities issued in connection with the private placement
are subject to a four month plus one day hold period expiring
April 19, 2024 under applicable
Canadian securities laws. The Private Placement is subject to
receipt of final approval of the TSXV.
About Luca Mining Corp.
Luca Mining Corp. is a Canadian based mining company with two
100% owned Mexican gold, silver, and base metal mining
projects. With one mine ramping up, and another going through
an optimisation program, the Company expects these operations to
generate consistent, positive free cash flow starting in early
2024.
Luca's Tahuehueto Mine is a new underground gold mine in
northwestern Durango State, Mexico, located within the prolific Sierra
Madre Mineral Belt which hosts numerous producing and historic
mines along its trend. Currently in the final stages of
construction to the nameplate capacity of 1,000 tonnes per day,
Tahuehueto is on track to become a significant and one of
Mexico's newest gold mines to come
into production. The Pre-Feasibility Study updated in 2022
contemplates an operation achieving production of 40,000 ounces
gold-equivalent per year, with approximately 75% of the revenues
from precious metals, and a 10-year mine life.
The Campo Morado Mine, located in Guerrero State, Mexico, is an operating underground base and
precious metals mine with a throughput of approximately 600,000
tonnes per year, producing copper, zinc and lead concentrates with
significant precious metals credits. It is currently undergoing an
optimisation program which is already generating significant
improvements in recoveries and grades, and cashflows.
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 Release 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 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.
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SOURCE Luca Mining Corp.