Guadalajara, Mexico – September 19, 2026 -- Luca Mining Corp. has agreed to acquire the El Barqueño gold-silver-copper property in Jalisco, Mexico from a subsidiary of Agnico Eagle in a deal that could total up to $60 million in cash and shares plus royalty consideration.
Deal structure ties payments to drilling and production milestones
Luca will pay $10 million on closing through the issuance of its common shares, followed by up to $30 million in contingent payments: $15 million three months after the first drilling program begins, and $15 million upon commercial production. A further $20 million is tied to output, paid at $5 million for every 100,000 gold-equivalent ounces produced, capped at 400,000 ounces. Agnico Eagle will also hold a 2.0% net smelter return royalty on areas with currently defined mineral resources, which Luca can halve to 1% for $12.5 million.
Historical estimate points to 1 million ounces of gold-equivalent resources
El Barqueño spans over 32,000 hectares roughly 100 km west of Guadalajara. A 2025 historical estimate, not yet verified under NI 43-101, cites 399,265 ounces of gold equivalent at 1.47 g/t AuEq in the indicated category and 650,046 ounces at 1.43 g/t AuEq inferred. Agnico Eagle drilled approximately 225,000 metres at the site between 2015 and 2018, part of roughly 300,000 metres of total historic drilling since the company acquired the property via Cayden Resources and Soltoro Ltd. in 2014 and 2015.
Regulatory hurdle blocks exploration permits pending court ruling
El Barqueño currently lacks exploration drilling permits due to the Jalisco Regional Ecological Territorial Planning Program (POETR), which overlaps portions of the project's concessions granted before the program existed. A direct amparo proceeding is pending before the Fourth District Court for Administrative Matters in Jalisco to challenge the POETR's application. Luca said it is working with Agnico Eagle to pursue a legal resolution restoring the project's exploration and development pathway.
Closing targeted for fourth quarter of 2026
The transaction requires approval from the Mexican Federal Economic Competition Commission and the TSX Venture Exchange, alongside other customary closing conditions. Agnico Eagle will become a significant shareholder of Luca as part of the arrangement. ATB Cormark Capital Markets is advising Luca on financing, while Cassels Brock & Blackwell LLP is serving as legal counsel.
Luca CEO Dan Barnholden said the acquisition adds a "high-quality, high-grade" development asset suited to both open-pit and underground mining methods. The company plans to commission a current mineral resource estimate and exploration targets following closing.