Luca Mining Strikes Copper Mine Deal, Eyes Expansion

Luca Mining Corp. (TSXV:LUCA, OTCQX:LUCMF) has made two significant deals that set it up for a major growth phase. The company will acquire 100% of the Cozamin underground copper mine in Zacatecas State, Mexico from Capstone Copper Corp. (TSX:CS) for up to US$385 million.

The upfront price is about two times cash flow, with Cozamin estimated to generate US$140-150 million a year in mine-site free cash flow at current prices. The mine's reserve base currently runs until 2030, but Luca plans to invest more in exploration to extend it further.

Luca will also acquire the El Barqueño gold project from Agnico Eagle Mines (TSX:AEM, NYSE:AEM). While land-use issues in Jalisco may delay drilling for 12-18 months, the project has shown potential as an underground mine producing 50,000-75,000 ounces of gold equivalent a year.

The Cozamin deal is expected to close in Q4 2026, subject to regulatory approval. The financing package includes US$125 million of term debt from Taurus and Macquarie, and a C$155 million bought deal led by National Bank of Canada Capital Markets.