VANCOUVER, BC, June 28,
2023 /CNW/ - Luca Mining Corp. ("Luca" or the
"Company") (TSXV: LUCA) (OTCQX: LUCMF) (Frankfurt: TSGA) is
thrilled to announce two significant milestones. Firstly,
the Tahuehueto Gold Project in Durango, Mexico, has achieved a major
milestone with a production capacity of 500 tonnes per day
("tpd"), on time and budget. Secondly, Luca has successfully
closed an oversubscribed non-brokered private placement (the
"Private Placement"), for a total of CAD$24,896,551.42 (see the Company's news release
dated March 31, 2023).
Highlights
- Tahuehueto Gold Project achieves 500 tpd production
milestone, on schedule and budget
- Funded to achieve commercial production of 1,000 tpd,
scheduled for year-end 2023
Mike Struthers, CEO, commented,
"We are delighted to have accomplished our goal of reaching 500
tpd at Tahuehueto. This achievement is a testament to the
dedication and collaborative efforts of our site teams,
contractors, management, and staff. But our focus on
delivering Tahuehueto for all our stakeholders continues, as we
push towards the ultimate goal of commercial production at 1,000
tpd by year-end. This underpins our strategy of operating two
profitable mines and laying a solid foundation for
growth, ultimately leading to an exceptional performance in
2024."
"In addition to this significant operational milestone, Luca
is proud to announce the successful completion of its funding
round, raising an impressive CAD$24.9
million. This accomplishment, particularly under current
market conditions, is the result of tremendous efforts by our core
team and key stakeholders."
"These significant accomplishments underline the trust and
confidence investors have placed in the Company, our new team, and
our ambitions for growth. The strong support received from new and
existing shareholders is a testament to the dedication of the Luca
Mining team."
Tahuehueto Achieves 500
TPD
The Company is very pleased to hit this critical first
production goal of 500 tpd at Tahuehueto, as planned, by
June 30th, 2023. With an installed
capacity of 500 tpd the mine is expected to generate positive cash
flow at current metal prices.
This is the first of two major milestones for Tahuehueto
construction. Commercial production will be achieved when a
capacity of 1,000 tpd is completed by end 2023. Based on the
pre-feasibility study updated in April, 2022 (NI43-101 Technical
Report "Preliminary Feasibility Study – Tahuehueto Project"),
at a capacity of 1,000 tpd the mine will have a net present value
of USD $131.8m1, an IRR of
65%, and will have an average all-in sustaining cost of USD
$855/oz AuEq over the 10-year mine
life.
______________________________
|
1 Economic
analysis based on following metal prices: gold US$ 1,650/oz; silver
US$ 21.02/oz, lead US$ 0.91/lb and zinc US$ 1.15/lb
|
Recent production (June 2023 to
date) grades have averaged 2.47 g/t Au, 31.2 g/t Ag, 1.23% Pb, and
2.92% Zn. Recoveries of all key metals were within 5% of plan, and
the lead concentrate, to which the majority of gold and silver
report, achieved an average content of 51.2 g/t Au and 648.5 g/t
Ag. The zinc concentrate achieved the plan, at an average content
of 45.2 % Zn.
A key component of this milestone is the completion of the first
stage ("Stage 1A") of the tailings dam. Tailings deposition within
this facility has now commenced, and construction of the remaining
two stages will continue for the remainder of 2023.
Other key achievements include:
- Ongoing mining of access and operating development on various
mine levels, to sustain planned production rates.
- Optimisation of the existing tailings filter press, and
completion of foundations for a second.
- Completion of definitive power supply to process plant and
related facilities, and all earthing systems.
- Upgrades to camp facilities.
Construction of certain ancillary systems for both the 500 tpd
and 1,000 tpd stages continues. The overall construction effort
will be maintained, towards the ultimate goal of 1,000 tpd by
year-end 2023.
Key elements for the 1,000 tpd project include:
- Installation of the second ball mill, and associated
systems
- Further advances in tailings dam construction
- Installation of additional tailings filter presses
- Completion of certain material handling infrastructure in the
underground mine.
News flow over the coming months will focus on progress towards
achieving the 1,000 tpd goal.
Private Placement
Under the third and final tranche of the Private Placement, the
Company sold 11,831,474 units of the Company (each, a
"Unit") at a price of CAD $0.35 per Unit for gross proceeds of CAD
$4,141,016.25. On April 25, 2023, the Company closed the first
tranche of the Private Placement for gross proceeds of CAD
$18,344,222.97 and on June 2, 2023, the Company closed the second
tranche of the Private Placement for gross proceeds of CAD
$2,411,312.20 (see the Company's news
releases dated April 26 and
June 5, 2023). The Private Placement
was heavily oversubscribed, with aggregate gross proceeds of CAD
$24,896,551 exceeding the original
announced amount of CAD $20,300,000
by CAD $4,596,551.
Each Unit under the third tranche consists of one common share
of the Company (a "Share") and one-half of one transferable
share purchase warrant (each whole, a "Warrant"). Each
Warrant entitles the holder thereof to acquire one additional Share
(a "Warrant Share") at a price of CAD $0.50 per Warrant Share until June 27, 2025 (the "Expiry Date"), subject
to acceleration. If the closing price of the Shares on the TSX-V or
such other stock exchange as Luca is listed on exceeds CAD
$0.90 for 15 consecutive trading
days, the Company will earn the right, by providing notice (the
"Acceleration Notice") to the warrant holders via a news
release or written notice, to accelerate the Expiry Date of the
Warrants to 4:00 P.M. (Vancouver time) on the 30th day
from the date of the Acceleration Notice (the "Accelerated
Expiry Date"). If the Company provides an Acceleration Notice,
all Warrants that are not exercised by the Accelerated Expiry Date
will expire.
All securities issued in connection under the third tranche are
subject to a four month plus one day hold period under applicable
Canadian securities laws. Aggregate finders' fees of CAD
$1,198,246 and 3,423,555 finders'
warrants were paid in connection with the Private Placement to
various finders. The terms of the Finders' Warrants are the same as
the Warrants, except (i) the Finders Warrants are non-transferable
and (ii) the Expiry Date of the Finders' Warrants is two years from
their respective dates of issue.
A related party to a director and an individual who is director
and officer of the Company, acquired an aggregate of 980,759 Units
under the third tranche for a total purchase price of CAD$343,266. Accordingly, the Private Placement
is to that extent a "related party transaction" as defined under
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions. The transaction is exempt from
the formal valuation and minority shareholder approval requirements
of MI 61-101, as neither the fair market value of any securities
issued to, or the consideration paid by such persons, will exceed
25 per cent of the Company's market capitalization.
About Luca Mining Corp.
Luca Mining Corp. is a Canadian based mining company with two
100% owned Mexican gold, silver, and base metal mining
projects.
Luca's Tahuehueto Gold Mine Project is in north-western Durango
State, Mexico where construction
of an initial 500 tonnes per day ("tpd") operation has been
achieved. The second stage, the 1000 tpd project, is now
commencing. The operation is generating gold, silver, lead, and
zinc in concentrates.
Campo Morado is an operating
polymetallic base and precious metals mine currently producing at
an average of 2,300 tpd, generating zinc and copper concentrates
with significant precious metals credits.
www.lucamining.com
On Behalf of the Board of Directors
(signed) "Mike Struthers"
Mike Struthers, CEO and Director
Cautionary Note Regarding Production Decisions and
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 and
a prefeasibility study at the Tahuehueto Mine that provides a
conceptual life of mine plan and a preliminary economic analysis
based on the previously identified mineral resources (see News
Release dated November 8, 2017,
April 4, 2018 and April 25, 2022).
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,
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, such as
production rates and increases; success of exploration, development
and bulk sample processing activities, and timing for processing at
its own mineral processing facility on the Tahuehueto project site.
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, that the
current exploration, development, environmental and other
objectives concerning the Campo Morado Mine and the Tahuehueto
Project can be achieved; the continuity of the price of gold and
other metals, economic and political conditions, and operations.
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.