Today: LUCA Cuts Debt by 39%, Strengthening Balance Sheet Today, Luca Mining Corp. (Ticker: LUCA.v or LUCMF for US investors) announced the repurchase of its US$5.8 million convertible debenture, significantly strengthening its balance sheet and reducing its total debt by 39%.
Luca Mining operates two 100%-owned mines in Mexico’s Sierra Madre mineralized belt, producing gold, copper, zinc, silver, and lead, aiming to produce 100k Gold Eq ounces in 2025.
As part of its strategy to improve financial stability and support growth plans, Luca purchased 43% (US$2.5 million) of the debenture, while an arm's-length third-party corporation, Jaluca Limited, acquired 57% (US$3.3 million).
Luca immediately canceled its portion, cutting fully diluted shares outstanding by 10.29 million or 4.4%. Meanwhile, Jaluca converted its share of the debenture at $0.35, eliminating the remainder of the debt.
The repurchase was funded through the exercise of 8.7 million warrants in December 2024, raising C$4.4 million.
As a result, Luca's total debt has been reduced to approximately US$11.1 million, representing a nearly 39% decrease since October 2024.
With US$6.75 million in cash and 221.37 million shares outstanding, the company plans to continue leveraging warrant exercises to achieve debt-free status by the end of 2025.
Luca remains focused on generating free cash flow from both operations. CEO Dan Barnholden emphasized Luca’s commitment to reducing shares at a discount, improving its financial position, and advancing exploration programs:
"As we have committed to shareholders, we are dedicated to repaying our debt and reducing our shares outstanding as quickly as possible… This sets us apart from our peers and speaks to our commitment to creating shareholder value."
Luca Mining’s latest steps to reduce debt and strengthen its financial position underscore the company’s focus on long-term growth and shareholder value.
With two producing mines, ongoing optimization programs, and exploration initiatives aimed at resource expansion, Luca is well-positioned to advance its operations and achieve its goal of becoming debt-free before the end of the year.
Full news here: https://lucamining.com/press-release/?qmodStoryID=4596272390183057
Posted on behalf of Luca Mining Corp.