#Canada #Vancouver #Luca Mining #Financial Growth #warrant exercise

Luca Mining Corp. Reports Significant Financial Growth

Luca Mining Corp., a prominent player in the mining industry, has recently shared exciting news about a remarkable surge in its cash balance, which now stands at an impressive $21 million. This achievement comes primarily through the successful exercise of share purchase warrants and a robust cash flow from operations. Investors' confidence, including notable insiders, has played a crucial role, with a total of 38.8 million share purchase warrants being exercised, translating into USD $14.0 million (approximately CAD $19.8 million).

The company's proactive approach to managing its finances is noteworthy. Over the recent months, Luca has effectively reduced its debt by USD $8.4 million, resulting in a remaining debt balance of USD $8.5 million. This positive shift in financial stability is underpinned by a growing cash and cash equivalents balance that currently reaches USD $20.6 million, which includes not only cash but also silver bullion on hand.

CEO Dan Barnholden expressed optimism about the company’s financial trajectory, highlighting that the expiration and exercise of most of the warrants related to the company's recapitalization strategy initiated in 2023 have positioned Luca Mining in a solid financial state. With a limited number of dilutable securities remaining, the company is keen on quickly eliminating its debt while simultaneously funding impactful capital improvements at both of its operational mines.

Luca Mining operates two wholly owned mines located in Mexico’s Sierra Madre mineralized belt: the Campo Morado Mine and the Tahuehueto Mine. The Campo Morado mine produces polymetallic resources, including zinc, copper, gold, silver, and lead, while the Tahuehueto mine, a newly constructed underground operation, has begun commercial production, focusing primarily on gold and silver. The strategic positioning within these prolific mining regions not only enhances Luca’s commodity production profile but also increases its potential for exploration and resource expansion.

Looking forward into 2025, Luca Mining is optimistic about generating free cash flow ranging from USD $30 million to USD $40 million, which promises to yield one of the industry’s most favorable cash flow rates among its peers. The combination of growing cash reserves, plans for a debt-free existence by 2026, and increasing production levels set the stage for what's anticipated to be an exceptional year for the company.

Furthermore, in a significant milestone, Luca Mining Corp. has also achieved inclusion in the Solactive Global Copper Miners Total Return Index as of May 1, 2025, reflecting its strengthening market position and growth potential. This inclusion, tracked by the Global X Copper Miners ETF, is expected to enhance the company’s visibility and attract further investment interest.

In conclusion, the ongoing commitment of Luca Mining to enhance its financial structure, reduce debt, and expand its production capabilities signifies a robust and optimistic outlook. The support from shareholders and the hard work of its dedicated employees and contractors have undeniably contributed to the organization's remarkable turnaround. As the market for commodities remains strong, Luca Mining is poised to capitalize on upcoming opportunities, creating a narrative of sustained growth and financial prosperity.