Luca Mining Corp. ("Luca" or the "Company") (TSX-V: LUCA; OTCQX: LUCMF; Frankfurt: Z68) is pleased to announce the recommencement of principal repayments on its term loans with Trafigura Mexico S.A. de C.V. ("Trafigura"), a significant milestone in the Company's financial strategy. The Company is on track to eliminate its term debt in 2026, reflecting a stronger financial outlook and disciplined cash management.
Luca has outstanding loans with Trafigura totaling US$18.1 million. This total includes a non-interest-bearing convertible loan of US$5.8 million due in January 2027. The remaining US$12.3 million in term debt is scheduled for repayment by mid-2026, offering the Company added financial flexibility.
The Company commenced principal repayments to Trafigura on its outstanding term debt in October 2024, leveraging improved cash flow from its ongoing mining operations. This achievement reflects the Company's commitment to optimizing financial performance while focusing on operational efficiency. Luca remains focused on strengthening its balance sheet and reducing debt to support its long-term financial stability.
"Recommencing principal repayments marks a pivotal moment for Luca as we continue to enhance our financial stability," said Lisa Dea, CFO. "Our improved cash flow allows us to confidently resume debt repayments while maintaining our growth trajectory. This marks a critical step in strengthening our balance sheet and we are well-positioned to be debt-free by 2027. We are focused on using our cash flow to support both debt reduction and the continued success of our operations"
As Luca reduces its debt, the Company expects to gain greater financial flexibility, enabling a focus on future growth opportunities and enhancing long-term shareholder value.
Luca's favourable debt status is a result of the Company successfully completing a restructuring transaction with Trafigura in January of this year. (See news release dated January 19, 2024.) The key result of this transaction was converting US$5.8 million of the term loan into the non-interest-bearing convertible debenture referenced above. A subsequent agreement was transacted in August 2024 (see Q2 Financial Statements) resulting in the principal payment dates of the term loan being pushed out, thereby giving the Company more options as we worked to improve our balance sheet.
Corporate Update
The Company also reports that Mr. Chris Richings, VP of Technical, has resigned from his position to pursue a new career opportunity. The Company would like to thank Chris for his valuable contributions to Luca. His expertise and dedication have been instrumental to our progress, and we wish him continued success in his future endeavors.
