Goldgroup Mining commits US$75M to Luca Mining for Cozamin mine acquisition

Goldgroup Mining has committed US$75 million to Luca Mining to support the proposed acquisition of the Cozamin copper-silver mine located in Zacatecas, Mexico. This investment replaces a previous US$75 million equity backstop provided by Trafigura Pte Ltd.

Goldgroup will participate in Luca’s US$110 million private placement of subscription receipts. Upon completion of the acquisition and conversion of the receipts, Goldgroup expects to hold approximately 19.9% ownership in Luca Mining. Goldgroup intends to fund this commitment using existing cash, including proceeds from its recent US$121.8 million non-brokered private placement, which was significantly oversubscribed.

The Cozamin mine purchase is valued at US$290 million upfront, consisting of US$275 million in cash and US$15 million in Luca shares, with additional contingent payments based on copper prices. Both the investment and the mine acquisition remain subject to regulatory approvals and closing conditions.