Fortuna Mining Corp. (FSM) announced on Wednesday a definitive agreement to sell its entire interest in Compañía Minera Cuzcatlán S.A. de C.V., the proprietor of the San Jose Mine, to Minas del Balsas S.A. de C.V., a privately-held Mexican firm.
The transaction's closure is anticipated to begin in early 2025, enabling Fortuna Mining to direct its attention towards more lucrative portfolio prospects.
According to the agreement's stipulations, the Canadian mining company is slated to receive $6 million incrementally as the transaction progresses, with the potential to earn an additional $11 million contingent upon fulfilling specific conditions.
Furthermore, Fortuna will be entitled to a 1 percent net smelter return (NSR) royalty derived from production at the San Jose Mine concessions for five years following the commencement of production activities.
Completion of this transaction is anticipated in the first quarter of 2025.
In pre-market trading, Fortuna's shares are priced at $4.50, reflecting a decline of 1.32 percent on the New York Stock Exchange.
