LUCA MINING COMPLETES C$211 MILLION SUBSCRIPTION RECEIPT FINANCINGS IN CONNECTION WITH THE PROPOSED ACQUISITION OF CAPSTONE COPPER'S COZAMIN MINE
Luca closes financing for a transformative Mexican copper-silver acquisition, securing strategic capital to advance its development projects.
Luca Mining Corp. has completed a C$211.4 million subscription receipt financing to fund the cash consideration for its proposed acquisition of Capstone Copper's Cozamin Mine. The capital stack comprises a C$155 million bought-deal private placement, consisting of 155 million receipts at C$1.00, and a C$56.4 million concurrent private placement with Wheaton Precious Metals Corp. and Taurus Mining Finance Fund No. 3.
Proceeds are held in escrow with Computershare and will convert to common shares only upon satisfaction of acquisition conditions, with a release deadline of February 28, 2027. Underwriter compensation is set at 5.5% of gross proceeds, with 50% held in escrow pending closing.
Goldgroup Mining Inc. retains its 19.9% ownership interest and board nomination rights under a new Investor Rights Agreement. The transaction remains subject to TSX Venture Exchange and Mexican Federal Antitrust Commission approvals.
Luca Mining Corp. (LUCA) completed the financing for its Cozamin acquisition, a move that removes near-term execution risk and validates the capital stack with strategic partners Wheaton Precious Metals, Taurus Gold, and Goldgroup Metals. Although the deal was announced in September and the financing was previously telegraphed, the inclusion of Wheaton’s incremental silver stream and Taurus’s acquisition facility provides industry credibility and materially de-risks the transaction.
Following the announcement, the company’s stock traded flat around $1.14, indicating that the financing had already been priced in by the market.
Luca Mining Corp. (LUCA) operates two wholly-owned underground producing mines in Mexico's Sierra Madre belt: Campo Morado in Guerrero, which produces zinc, copper, gold, silver, and lead, and Tahuehueto in Durango, which produces gold and silver. The company is expanding its footprint through mergers and acquisitions, having acquired the Cozamin Mine in Zacatecas, which focuses on copper and silver, and the El Barqueno Project in Jalisco, which targets gold, silver, and copper. Its strategic focus centers on brownfield exploration, mill optimization, and leveraging existing infrastructure to extend mine life and improve recoveries.