VANCOUVER, BC, Nov. 5, 2024
/CNW/ - Luca Mining Corp. ("Luca" or the "Company")
(TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: Z68) is pleased to announce
the recommencement of principal repayments on its term loans with
Trafigura Mexico S.A. de C.V. ("Trafigura"), a significant
milestone in the Company's financial strategy. The Company is on
track to eliminate its term debt in 2026, reflecting a stronger
financial outlook and disciplined cash management.
Luca has outstanding loans with Trafigura totaling US$18.1 million. This total includes a
non-interest-bearing convertible loan of US$5.8 million due in January 2027. The remaining US$12.3 million in term debt is scheduled for
repayment by mid-2026, offering the Company added financial
flexibility.
The Company commenced principal repayments to Trafigura on its
outstanding term debt in October
2024, leveraging improved cash flow from its ongoing mining
operations. This achievement reflects the Company's commitment to
optimizing financial performance while focusing on operational
efficiency. Luca remains focused on strengthening its balance sheet
and reducing debt to support its long-term financial stability.
"Recommencing principal repayments marks a pivotal moment for
Luca as we continue to enhance our financial stability," said
Lisa Dea, CFO. "Our improved cash
flow allows us to confidently resume debt repayments while
maintaining our growth trajectory. This marks a critical step in
strengthening our balance sheet and we are well-positioned to be
debt-free by 2027. We are focused on using our cash flow to support
both debt reduction and the continued success of our
operations" <Listen to Lisa explain the company's
plans>
As Luca reduces its debt, the Company expects to gain greater
financial flexibility, enabling a focus on future growth
opportunities and enhancing long-term shareholder value.
Luca's favourable debt status is a result of the Company
successfully completing a restructuring transaction with Trafigura
in January of this year. (See news release dated January 19, 2024.) The key result of this
transaction was converting US$5.8
million of the term loan into the non-interest-bearing
convertible debenture referenced above. A subsequent
agreement was transacted in August
2024 (see Q2 Financial Statements) resulting in the
principal payment dates of the term loan being pushed out, thereby
giving the Company more options as we worked to improve our balance
sheet.
Corporate Update
The Company also reports that Mr.
Chris Richings, VP of Technical, has
resigned from his position to pursue a new career
opportunity. The Company would like to thank Chris for his
valuable contributions to Luca. His expertise and dedication have
been instrumental to our progress, and we wish him continued
success in his future endeavors.
About Luca Mining Corp.
Luca Mining Corp (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is
a diversified Canadian mining company with two 100%-owned producing
mines located in Mexico's prolific
Sierra Madre mineralized belt home
to numerous producing and historic mining operations. The Company
produces gold, copper, zinc, silver, and lead, each with
significant development potential and resource upside.
The Campo Morado mine, an
underground operation in Guerrero
State, produces copper-zinc-lead concentrates with precious
metals credits. Currently, the mine is undergoing an optimization
program that is already yielding substantial improvements in
recovery rates, grades, efficiencies, and cash flows.
The Tahuehueto Gold and Silver Mine, Luca's newest
underground operation in Durango State, is a key addition to the
Company's portfolio and to the region's mining landscape. The mill
at Tahuehueto is now in the commissioning phase, with commercial
production expected by year-end
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, Chief Executive
Officer
For more information, please visit: www.lucamining.com
Cautionary Note Regarding 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,
impact of debt reduction on the Company's operations; 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. 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, the impact of debt reduction on the
Company's operations and operating performance, and increased
financial flexibility resulting from such debt reduction.
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.