Luca Mining Expands in Mexico with $60 Million Agnico Eagle Deal

The payment structure consists of $10 million in newly issued shares upfront, supplemented by two $15 million contingent payments payable in cash or equity. An additional $20 million is tied to specific future production milestones. Luca Mining retains the right to repurchase half of the 2% net smelter return interest for $12.5 million.

El Barqueno currently holds historical mineral resource estimates of 399,265 gold equivalent ounces, with a further 650,046 inferred ounces. Despite the scale of the deposit, the site is presently locked in regional legal proceedings regarding environmental land-use zoning, which prevents active exploration drilling. CEO Dan Barnholden described the purchase as a strategic move to leverage the company’s local experience to de-risk the project. Both firms are working through the Mexican legal system to resolve the permitting impasse and unlock the property’s development potential.