Luca Mining Corp. has entered into a definitive asset purchase agreement to acquire a 100% interest in the El Barqueño property in Jalisco, Mexico, from Agnico Eagle Mines Limited.

Under the transaction terms, Luca will issue $10 million in common shares upon closing as an initial payment. Deferred consideration of up to $30 million includes milestone-linked payments of $15 million payable three months after the start of the first drilling program and $15 million upon commercial production. Luca can elect to pay these contingent amounts in cash, common shares, or a combination. The agreement also includes up to $20 million in production-linked payments based on gold equivalent ounces produced, alongside a 2.0% net smelter return interest on certain resource-hosting areas, half of which Luca can repurchase for $12.5 million. Closing is expected in the fourth quarter of 2026, pending approvals from the Mexican Federal Economic Competition Commission and the TSX Venture Exchange.

The 32,000-hectare property hosts a historical mineral resource estimate of 399,265 ounces of gold equivalent at 1.47 g/t indicated and 650,046 ounces of gold equivalent at 1.43 g/t inferred, which Luca treats as a historical estimate rather than a current resource. Following closing, Luca plans to prepare a current mineral resource estimate.

“The acquisition of El Barqueño will be a highly strategic and accretive transaction for Luca. We are excited to add a high-quality, high-grade gold-silver-copper development project to our portfolio of mining assets in Mexico.” — Dan Barnholden, CEO and Director

The property is not currently permitted for exploration drilling due to the Jalisco Regional Ecological Territorial Planning Program, prompting an ongoing amparo legal proceeding before the Fourth District Court for Administrative Matters in Jalisco to address the application of the program to the concessions. Once exploration permits are received, Luca plans to launch a first drilling program.

“Furthermore, our exploration team is excited to evaluate the growth potential at El Barqueño with a large-scale, regional exploration focus.” — Dan Barnholden, CEO and Director

Luca operates the Tahuehueto underground mine in Durango State, Mexico, which produces gold and silver and has achieved commercial production. Meanwhile, regional activity in Jalisco State includes an updated mineral resource estimate for the Santo Domingo project announced by Stroud Resources and Silver Hammer Mining.

The transaction expands Luca's Mexican asset base as the company prepares to advance permitting and exploration across the 32,000-hectare property.

Read the full announcement: LUCA ANNOUNCES AGREEMENT TO ACQUIRE EL BARQUEÑO FROM AGNICO EAGLE