07:34 AM EST, 01/07/2025 (MT Newswires) -- Luca Mining ( LUCMF ) on Tuesday said Jaluca, an arm's-length third-party corporation, and the company reached an agreement with Urion Holdings (Malta), a unit of Trafigura Mexico, to buy back all of Luca's US$5.8 million convertible debenture held by Urion.

Luca Mining ( LUCMF ) and Jaluca are buying 43% and 57% of the debenture, respectively, for a total purchase price of US$7.2 million, a discount of over 25% to Luca's closing share price of $0.58 on the TSX Venture Exchange on Jan. 3.

Luca Mining ( LUCMF ) said it will immediately cancel its portion of the debenture. Jaluca agreed to convert its bought share of the debenture at the debenture's exercise price of $0.35. The company said this removes US$5.8 million in debt from Luca's balance sheet.

Luca will have 221.3 million shares outstanding, 47.7 million warrants outstanding, US$11.1 million debt and around US$6.75 million cash. The company said proceeds will be used to pay down its debt with an objective to be debt free before the end of 2025.

"We have a well-defined growth strategy and boxes are being checked. We are well on our way to being debt free and are beginning to generate free cash flow from both of our mines," said Luca Mining ( LUCMF ) Chief Executive Dan Barnholden. "This year is shaping up to be a transformative year for Luca Mining ( LUCMF )."

Shares of the company closed up $0.010 or 1%, to $0.59 on Monday on the TSX Venture Exchange.