Luca Mining (LUCA-V) Total Combined Proceeds Of Life Offering And Private Placement Now Cdn$11.3 Million Due To Upsize Of Non-brokered Private Placement To Cdn$2.576 Million
September 23rd 2024 - NR
Further to its news releases dated Sept. 6, 2024, and Sept. 12, 2024, Luca Mining Corp. has fully subscribed its brokered private placement pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, Prospectus Exemptions, of 19 million units of the company. Due to heavy demand, the company has determined to increase the total amount of the recently announced concurrent non-brokered private placement from 3,222,222 units of the company at a price of 45 cents per unit to 6,126,167 units (the non-LIFE units) for gross proceeds of $2,756,775.
The company is pleased to advise that it has received lead orders for the private placement from Term Oil Inc. (Rick Rule) and Luca's chief executive officer, Dan Barnholden in the amounts of $500,000 and $450,000, respectively. Mr. Barnholden stated: "I am very pleased to welcome an extremely strong group of retail and institutional investors, including Rick Rule. I believe Luca is poised to deliver on its plan for production growth as demonstrated by my own personal investment."
The non-LIFE units have identical terms to the LIFE units except that the securities issued or made issuable pursuant to the non-LIFE units will be subject to a statutory four-month hold period. There are no finders' fees payable on the private placement.
The combined gross proceeds of the financings will total $11,306,775. The net proceeds from the financings will 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 for general corporate purposes.
Certain directors and officers of the company are acquiring securities under the private placement. Such participation is considered to be a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to nor the consideration paid by such persons will exceed 25 per cent of the company's market capitalization.
The financings are scheduled to close on or about Sept. 26, 2024, and are 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 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 metal 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 historic mines along its trend. The company is commissioning its mill capacity to greater than 1,000 tonnes per day, and key test work and production ramp-up are under way to increase production by the second half of 2024.
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden , Chief Executive Officer
For more information, please visit: www.lucamining.com
Qualified Persons
The technical information contained in this News Release has been reviewed and approved by Mr. Chris Richings , Vice-President Technical at Luca Mining as the Qualified Person for the Company as defined in National Instrument 43-101. |
