Goldgroup Mining to invest US$75 million in Luca Mining

Goldgroup Mining has committed a US$75 million investment in Luca Mining to support the acquisition of the Cozamin copper and silver mine located in Zacatecas, Mexico. The investment will be made through a private placement of subscription receipts, which Goldgroup expects to convert into approximately 19.9% of Luca Mining on a non-diluted basis once the acquisition is finalized.

This funding replaces a previous US$75 million capital support provided by Trafigura. The acquisition of 100% of Cozamin from Capstone Copper involves an initial consideration of US$290 million—comprising US$275 million in cash and US$15 million in Luca shares—plus up to US$95 million in deferred and contingent payments.

As part of the agreement, Goldgroup will hold rights to nominate two directors to Luca's board as long as they maintain at least a 10% stake. The Cozamin mine is an underground operation with approximately 20 years of continuous production. Luca Mining expects the acquisition to more than double its projected 2027 production levels.