Goldgroup Mining (TSX-V:GORO) has completed a previously announced strategic investment in Luca Mining (TSXV:LUCA) through a bought deal private placement offering of subscription receipts tied to Luca’s proposed acquisition of the Cozamin mine.
The company participated in the placement on 14 October 2026, acquiring roughly 101.12 million subscription receipts at US$1.00 per receipt for an aggregate investment of US$101.12 million ($146.1 million).
Following the completion of the Cozamin acquisition and the conversion of all subscription receipts, Goldgroup will hold approximately 101.12 million common shares of Luca, representing approximately 19.9% of the issued and outstanding Luca shares on a non-diluted basis.
Each subscription receipt converts into one Luca share upon satisfaction or waiver of release conditions, including all conditions precedent to closing the Cozamin acquisition. Goldgroup may convert the receipts earlier, provided its holding does not exceed 19.9% of Luca’s non-diluted shares unless Luca obtains required shareholder and regulatory approvals.
Under an investor rights agreement signed between the companies, Goldgroup maintains specific rights as long as it holds at least 10% of Luca’s outstanding shares. These include participation rights in equity financings to maintain its pro-rata ownership interest during dilutive issuances, as well as the right to nominate two directors to Luca’s board.
Goldgroup states the subscription receipts were acquired as part of its strategy to evaluate strategic investments and merger and acquisition opportunities in the mining sector.
Cozamin is an underground copper-silver mine that has operated continuously for approximately 20 years with established infrastructure, including paste backfill and filtered tailings systems.
Goldgroup Mining is a Canada-based mining company with assets in Mexico and the US.
Write to Paula Fabe at Mining.com.au
Main image: Luca Mining
