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Luca Mining Corp V.LUCA

Alternate Symbol(s):  LUCMF

Luca Mining Corp. is a diversified Canadian mining company with two 100%-owned producing mines in Mexico. It produces gold, silver, zinc, copper and lead from these mines that each have considerable development and resource upside. Its operations include Tahuehueto and Campo Morado. Tahuehueto project is in the northwest portion of the state of Durango, about 250 kilometers (km) northwest of Durango, the state capital, and 160 km northeast of the city of Culiacan, Sinaloa. The project is located about 25 km north of the Topia polymetallic-silver mine, 40 km northwest of the La Cienega gold, silver, base metal mine, 85 km southwest of the Guanacevi silver district, 280 km southeast of the Palmarejo silver and gold mine, and 150 km northwest of the San Dimas mining district, notable for the Tayoltita silver and gold mine. Campo Morado is a polymetallic underground operation located in the state of Guerrero, Mexico. It produces copper-zinc-lead concentrates with precious metals credits.


TSXV:LUCA - Post by User

Comment by diggin78on May 24, 2024 10:12am
92 Views
Post# 36055694

RE:new interview

RE:new interview   That was an encouraging interview. In some was Campo is the bright spot with the dramatically improved recoveries for such a small investment, but the excitement right now surrounds Tahuehueto. A brand new mine with "high grade, thick veins" and the recent discovery on level 23 demonstrating "continuous mineralization" in the words of Perez, sounds really good. I did pull up something from their last financial statement which throws some cold/lukewarm water on the excitement, at least for me, since I was unaware of this before today:

12. EMPRESS ROYALTY STREAMING

$

Amount

3,048 2,117 1,645 9,178

   

15,988 (6,205) $  9,783

 

On April 14, 2021, the Company entered into a silver stream agreement (the “Stream Agreement”) with Empress Royalty Corp. (“Empress”) in which Luca will deliver to Empress silver credits purchased from a bullion bank in an amount equivalent to 100% of the first 1,250,000 ounces of payable silver contained within produced lead and zinc concentrates from the Tahuehueto mining project; thereafter, the stream percentage of silver credit delivery will step down to 20% of the payable silver from produced lead and zinc concentrates. All streaming obligations will fully terminate after 10 years. To accommodate the arrangement, Empress has been accepted into the Trust Agreement. Empress, to secure the Stream Agreement advanced a total of US$5,000 with a first initial payment of US$2,000 received on April 29, 2021, and the remaining US$3,000 advance payment received on July 22, 2021.

   So Empress secured the first 1,250,000 ounces of silver produced at tahuehueto and then 20% thereafter, until 10 years has passed, for a total of $5,000,000!!!  Talk about a deal. They will receive a minimum of 37.5 million dollars if silver averages 30 dollars for their gauranteed 1.25 million ounces. I'm using US dollars here. Not sure if their loan was in cad, or not, but if it was, that's even better for Empress., who has a current market cap of about 31 million US. 
I guess what's good for Luca is also good for Empress!!!!
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