(Editors at Energy Analytics Institute, 7.Jan.2025) — Luca Mining Corp., along with an arm’s-length third-party corporation, Jaluca Limited, reached an agreement with Urion Holdings (Malta) Limited, a wholly owned subsidiary of Trafigura Mexico S.A. de C.V. to repurchase 100% of Luca’s $5.8mn convertible debenture held by Urion.
Luca and Jaluca are purchasing 43% and 57% of the debenture, respectively, for a total purchase price of $7.2mn or at an as if converted basis of CAD$0.4338 per share, a discount of over 25% to Luca’s closing share price on the TSX-V on 3 Jan. 2025 of $0.58 per share, Luca announced 7 Jan. 2025 in an official statement.
Luca will immediately cancel its portion of the debenture, reducing fully diluted shares outstanding by 10,285,714 shares or 4.4%. As part of the transaction, Jaluca has agreed to convert its purchased share of the debenture at the debenture’s exercise price of $0.35.
The result of the purchase and cancellation of $2.5mn of the debenture by Luca and the purchase and conversion of $3.3mn of the debenture by Jaluca is the removal of $5.8mn in debt from Luca’s balance sheet.
After completion of the transaction, Luca will have 221,365,671 shares outstanding.
In addition, the company has continued to make principal repayments on its term loan with Trafigura Mexico. Total debt outstanding has been reduced to $11.1mn since Oct. 2024, representing a nearly 39% reduction.
The purchase of the debenture was facilitated by the exercise of 8.7mn Luca warrants in Dec. 2024 for proceeds of C$4.4mn. The company’s cash balance is roughly $6.75mn, net after the purchase of the debenture and term debt repayment.
As a result of the foregoing, Luca will have 221,365,671mn shares outstanding, 47,789,457 warrants outstanding, $11.1mn debt and approximately $6.75mn cash. The company will continue to use proceeds from the ongoing warrant exercises to pay down its debt with an objective to be debt free before the end of 2025.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
