LUCA RECOMMENCES PRINCIPAL LOAN REPAYMENTS

Core Viewpoint - Luca Mining Corp. has recommenced principal repayments on its term loans with Trafigura, marking a significant milestone in its financial strategy and aiming to eliminate term debt by 2026, indicating a stronger financial outlook and disciplined cash management [1][3][4]. Financial Overview - The total outstanding loans with Trafigura amount to US$18.1 million, which includes a non-interest-bearing convertible loan of US$5.8 million due in January 2027 and US$12.3 million in term debt scheduled for repayment by mid-2026 [2]. - Principal repayments began in October 2024, supported by improved cash flow from ongoing mining operations, reflecting the company's commitment to financial performance and operational efficiency [3][4]. Strategic Developments - The recommencement of repayments is seen as a pivotal moment for the company, enhancing financial stability and allowing for a focus on future growth opportunities while reducing debt [4]. - A restructuring transaction completed in January 2024 converted US$5.8 million of the term loan into a non-interest-bearing convertible debenture, providing more options for improving the balance sheet [5]. Operational Updates - Luca Mining operates two 100%-owned producing mines in Mexico, focusing on gold, copper, zinc, silver, and lead, with significant development potential [7]. - The Campo Morado mine is currently undergoing an optimization program that is yielding improvements in recovery rates, grades, efficiencies, and cash flows [8]. - The Tahuehueto Gold and Silver Mine is in the commissioning phase, with commercial production expected by year-end [9].