Fortuna Mining To Sell San Jose Mine To Minas Del Balsas For Upto $17 Mln

(RTTNews) - Fortuna Mining Corp. (FSM), Wednesday announced a binding letter of agreement to sell its entire stake in Compaia Minera Cuzcatlan S.A. de C.V., the owner of the San Jose Mine, to Minas del Balsas S.A. de C.V., a private Mexican company.

The sale is scheduled to initiate closure procedures in early 2025, and that would allow the company to focus on higher-value portfolio opportunities.

As per terms of the agreement, the Canadian miner will receive $6 million in various stages of closing of the transaction, and upto nearly $11 million upon completion of certain conditions.

Additionally, Fortuna will receive a 1 percent net smelter royalty on production from the San Jose Mine concessions, for a period of five years after the start of production.

The transaction is expected to close in the first quarter of 2025.

In the pre-market hours, Fortuna's stock is trading at $4.5, down 1.32 percent on the New York Stock Exchange.