Luca adds 3rd Mexican property in $60M Agnico deal
Luca is adding the El Barqueño gold-silver-copper project in Jalisco, Mexico, as its third asset in the country.
Canadian mining firm Luca Mining is set to expand its operations in Mexico by acquiring the El Barqueño gold-silver-copper project from Agnico Eagle Mines for $60 million. The 320-square-kilometer property in Jalisco state offers a significant addition to Luca's growth pipeline, with a large and prospective project at a limited upfront cost.
The deal initially requires no cash payment from Luca, with the transaction closing through the issuance of $10 million worth of shares and $30 million in deferred payments tied to drilling, commercial production, and production. The El Barqueño project presents several challenges, including the lack of an exploration permit due to Jalisco's ecological territorial planning program, which must be addressed for the project to progress.
However, the deal structure provides Luca with a way to acquire a substantial development asset and defer much of the consideration until the project advances. The company can choose to make the $30 million contingent payments in cash, shares, or a combination of both, subject to certain conditions.
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