Luca Mining – 2 Recent Acquisitions Transform The Company Across Its Production Profile, Metals Mix, Jurisdictions, And From A Valuation Perspective

Dan Barnholden, CEO of Luca Mining (TSX.V:LUCA) (OTCQX:LUCMF) (FSE:TSGA), joins me to review the strategy and benefits of their 2 recent acquisitions, that expand and transform Luca beyond their 2 currently producing assets – the Campo Morado and Tahuehueto mines, located in the prolific Sierra Madre mineralized belt in Mexico.

On September 21, the Company announced it had entered into a definitive share purchase agreement with Capstone Copper Corp., to acquire 100% of the Cozamin Mine in Zacatecas, Mexico for total upfront consideration of $290 million, and up to an additional $95 million in deferred and contingent consideration.

Transaction Highlights:

More than doubles near-term production, with the combined company expected to generate net revenue of approximately $598 million in 2027(1), versus Luca’s 2025 net revenue of $177 million and operating cash flow of approximately $223 million in 2027(3), versus Luca’s 2025 operating cash flow of $37 million.

Highly accretive to Luca’s operating cash flow per share (“CFPS”), with consensus estimates indicating a 93% increase from $0.22/sh(2) to $0.42/sh(2, 3) with the addition of Cozamin.

Increase in free cash flow per share, with consensus estimates indicating an approximate $139 million(2), or $0.28/sh(2), improvement in unlevered free cash flow in 2027, from ($12 million)(2), or ($0.04/sh)(2), to $127 million(2), or $0.24/sh(2), with the addition of Cozamin(3).

Adds a proven, cash-generating operating asset with 20 years of continuous production and a historical reserve-based mine plan extending to 2030.

Established and permitted operation with longstanding community agreements and significant existing infrastructure, including the recently completed paste backfill and filtered tailings systems.

Strategic fit in Luca’s existing Mexico focused portfolio with opportunity to leverage existing local Mexican operating expertise, permitting knowledge, and stakeholder relationships.

Potential for mine life extension, resource upside, and operational optimization supported by a large historical resource base, extensive exploration opportunities across known mineralized systems and multiple underexplored targets, increased use of longhole mining, and Luca’s planned increased investment in exploration and resource definition following closing.

Expands Luca’s exposure to copper, positioning the Company to benefit from anticipated long-term copper demand growth while retaining significant exposu