Fortuna Mining Corp. announced it has entered into a binding letter agreement to sell its 100 percent interest in Compañia Minera Cuzcatlan S.A. de C.V., which owns the San Jose Mine in Oaxaca, Mexico, to Minas del Balsas S.A. de C.V. The transaction is expected to be completed in the first quarter of 2025.
Under the terms of the agreement, Fortuna will receive an aggregate consideration of $5 million cash at closing, $5 million on the first anniversary, and $10 million on the second anniversary. Additionally, Fortuna will retain a 1.0 percent net smelter royalty on production from the San Jose Mine concessions for a five-year term after production commences.
The divestiture of the San Jose Mine, which was scheduled to begin a progressive closure process in early 2025, aligns with Fortuna's strategy to focus management efforts and capital on higher-value opportunities within its portfolio. The San Jose Mine was previously one of the world's 12 largest primary silver producers for several years.
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