LUCA ANNOUNCES INTENTION TO LAUNCH NORMAL COURSE ISSUER BID
Rhea-AI Summary
Luca Mining (OTCQX: LUCMF) plans to launch a normal course issuer bid (NCIB) allowing repurchase of up to 13,750,000 common shares, about 5% of shares outstanding, for cancellation.
The NCIB is expected to run from May 21, 2026 to May 20, 2027, with purchases made on Canadian markets at prevailing prices. Management views the shares as undervalued and considers the NCIB an efficient use of capital, but is not obligated to buy any specific amount and may suspend or terminate the bid.
AI-generated analysis. Not financial advice.
Positive
- Authorization to repurchase up to 13,750,000 shares, about 5% of float
- Share cancellations could increase ownership percentage of remaining shareholders
- Management signals confidence in free cash flow and asset value
- NCIB provides flexible capital allocation tool over a one-year period
Negative
- Company not obligated to repurchase any shares under the NCIB
- NCIB can be suspended or terminated at any time by management
News Market Reaction – LUCMF
On the day this news was published, LUCMF declined 2.50%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The NCIB is expected to commence on May 21, 2026, and will terminate on May 20, 2027, or on an earlier date in the event that the maximum number of Common Shares sought under the NCIB have been repurchased.
Purchases under the NCIB are expected to be conducted pursuant to open market transactions through the facilities of the TSX Venture Exchange (the "TSXV") and all available Canadian markets and alternative trading platforms at prevailing market prices at the time of acquisition, through Stifel Nicolaus Canada Inc., and made in accordance with the policies of the TSXV and the requirements of those Canadian markets and alternative trading platforms. All Common Shares purchased under the NCIB will be returned to treasury and cancelled.
The Company's management and Board of Directors believe that the current market price of the Common Shares does not adequately reflect the underlying value of the Company, particularly in light of its ability to generate free cash flow, self-fund certain expansion initiatives, and the replacement value of its assets. Accordingly, management of the Company considers the NCIB as an appropriate and efficient use of capital.
The Company is not obligated to purchase any specific number of shares under the NCIB. The timing and extent of any purchases will depend on market conditions and other corporate considerations, as determined by management. The Company may suspend or terminate the NCIB at any time. The Company has not previously completed an NCIB.
About Luca Mining Corp.
Luca Mining Corp. (TSX-V: LUCA, OTCQX: LUCMF, Frankfurt: Z68) is a Canadian mining company with two wholly owned mines located in the prolific Sierra Madre mineralized belt in
The Company's Campo Morado Mine hosts VMS-style, polymetallic mineralization within a large land package comprising 121 square kilometres. It is an underground operation, producing zinc, copper, gold, silver and lead. The mine is located in Guerrero State.
The Tahuehueto Mine is a large property of over 100 square kilometres in Durango State. The project hosts epithermal gold and silver vein-style mineralization. Tahuehueto is a newly constructed underground mining operation producing primarily gold and silver. Luca has successfully commissioned its mill and is now in commercial production at Tahuehueto.
On Behalf of the Board of Directors
(signed) "Dan Barnholden"
Dan Barnholden, Chief Executive Officer
For more information, please visit: www.lucamining.com
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward Looking Information includes, but is not limited to, statements about potential purchases of Common Shares for cancellation under the NCIB, the budget for the repurchases conducted under the NCIB, and future benefits resulting from purchases of Common Shares under the NCIB. In certain cases, Forward-Looking Information can be identified using words and phrases such as "plans"," expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the Company will be able to access free cash flow or raise additional capital as necessary and the continuity of economic and political conditions. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Luca Mining Corp.