Fortuna completes sale of San Jose Mine, Oaxaca, Mexico
Fortuna Mining Corp. [NYSE: FSM; TSX: FVI] reported the successful completion of the sale of its 100% interest in Compañia Minera Cuzcatlan S.A. de C.V. to JRC Ingeniería y Construcción S.A.C., a private Peruvian company. Cuzcatlan is the owner of a 100% interest in the San Jose Mine in the state of Oaxaca, Mexico. The transaction closed simultaneously with the execution of a definitive share purchase agreement.
Under the terms of the share purchase agreement, JRC acquired all of the issued and outstanding shares of Cuzcatlan held by Fortuna’s subsidiaries in consideration for payment of US$6.5 million; payment of approximately US$1.2 million for pre-paid working capital items and tax receivables by April 30, 2025; and the right to receive up to approximately US$8.3 million upon the completion of certain conditions.
In addition, Fortuna retains a 1.0% net smelter royalty on production from the San Jose Mine concessions payable after the first 6.1 million ounces of silver and the first 44,000 ounces of gold or 119,000 gold equivalent ounces have been mined or extracted from the property.
Fortuna successfully built, expanded, and operated the underground San Jose mine for 13 years, developing it into one of the 12 largest primary silver producers in the world for several years. In December 2024, the company placed the mine on care and maintenance due to its higher operating costs and the exhaustion of its mineral reserves and initiated a strategic process to divest of this non-core asset. The San Jose mine still holds a small mineral resource inventory which does not meet Fortuna’s economic criteria for mineral reserve classification.
Fortuna Mining has four operating mines and exploration activities in Argentina, Burkina Faso, C├┤te d’Ivoire, Mexico, and Peru, as well as the Diamba Sud Gold Project located in Senegal.
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