Luca Mining Corp. Plans to Initiate Normal Course Issuer Bid for Share Repurchases

Luca Mining Corp. (TSXV: LUCA, OTCQX: LUCMF, Frankfurt: Z68) has officially declared its intention to conduct a normal course issuer bid (NCIB), allowing the company to repurchase up to 13,750,000 common shares, equating to roughly 5% of the company’s currently outstanding shares. This strategic move is set to commence on May 21, 2026, and will conclude on May 20, 2027, unless the maximum share repurchase target is achieved sooner.

Rationale Behind the Issuer Bid

The management and Board of Directors at Luca Mining believe that the current market price of the company’s shares does not accurately reflect its underlying value. They cite several compelling factors contributing to this perception:

- The company’s ability to generate significant free cash flow.
- The potential to self-fund future expansion projects.
- The substantial replacement value of its operating assets.

Given these considerations, the management team sees the NCIB as a prudent use of capital that may help enhance shareholder value over time. It will be executed in alignment with the regulations set forth by the TSX Venture Exchange and various Canadian markets.

Procedure and Execution of the NCIB

The purchases under the NCIB will be conducted via open market transactions. Stifel Nicolaus Canada Inc. has been designated as the broker for these transactions. All repurchased shares will be returned to treasury and cancelled, effectively reducing the total number of shares outstanding in the market.

It is important to note that despite the outlined plans, Luca Mining is under no obligation to repurchase a specific number of shares. The frequency and extent of repurchases will depend largely on market conditions and other corporate factors, as determined by management. Moreover, the company maintains the right to suspend or terminate the NCIB at their discretion.

Company Overview

Situated in Vancouver, British Columbia, Luca Mining Corp. operates two wholly owned mines located within the mineral-rich Sierra Madre region of Mexico. The company’s mines are renowned for producing a variety of valuable minerals, including gold, copper, zinc, silver, and lead, all contributing to robust cash flows.

Among these operations, the Campo Morado Mine stands out with its VMS-style polymetallic mineralization spread across a significant land area of 121 square kilometers. This underground mining venture is focused on producing zinc and copper, as well as gold, silver, and lead. Located in Guerrero State, Campo Morado is a primary asset for Luca Mining.

Additionally, the company’s newly operational Tahuehueto Mine, situated within over 100 square kilometers in Durango State, specializes in epithermal gold and silver vein mining. Recent advancements have seen the successful commissioning of its processing mill, marking a significant milestone as it enters commercial production.

Overall, Luca Mining Corp. continues to demonstrate its commitment to operational excellence, robust financial performance, and strategic capital management as it navigates the evolving landscape of the mining industry.

For more information about Luca Mining Corp., visit lucamining.com.

Conclusion

As Luca Mining embarks on this new initiative, it highlights a proactive approach in managing its share structure and signals confidence in its operational capabilities and future growth potential. With the initiation of the NCIB, the company aims to strengthen its market position and continue delivering value to its shareholders.