First Majestic Sells San Martin Silver Mine for $90M, Streamlining Portfolio

summarizeSummary

First Majestic Silver Corp. has entered into a definitive agreement to sell its past-producing San Martin Silver Mine for $90 million, continuing its strategy of divesting non-core assets and focusing on active operations.

check_boxKey Events · M&A and Partnerships · AG

• Sale of San Martin Mine

  First Majestic Silver Corp. agreed to sell its 100%-owned, past-producing San Martin Silver Mine in Mexico to Flextronics Supply and Service for a total cash consideration of US$90 million.

• Strategic Divestment

  The San Martin mine has been under care and maintenance since July 2019. This sale follows a recent pattern of divesting non-core assets, such as the Del Toro Silver Mine, to streamline operations and focus on producing assets.

• Payment Structure

  The US$90 million consideration includes US$2.5 million at closing (US$0.5 million already in escrow), US$2.5 million within 180 days, US$10 million annually for five years, and a final US$35 million payment on August 31, 2032.

• Anticipated Closing

  The transaction is subject to customary closing conditions and Mexican Antitrust approval, with an expected closing in the fourth quarter of 2026.

auto_awesomeAnalysis · AG · Energy & Transportation

This definitive agreement to sell the San Martin Silver Mine for $90 million is a significant strategic move for First Majestic. The mine has been non-producing since 2019, so its divestment removes a non-core asset and provides substantial capital, albeit with payments staggered over several years. This follows the recent sale of the Del Toro mine and indicates a clear focus on optimizing the company's portfolio by shedding non-performing assets and concentrating resources on its active, producing mines. The capital infusion, even if spread out, strengthens the balance sheet and supports ongoing development projects.