08:31 AM EDT, 05/22/2024 (MT Newswires) -- Sierra Metals ( SMTSF ) said Wednesday that it signed a binding agreement to sell the Cusi mine in Mexico to Silverco Mining.

Silverco will pay US$2.5 million cash and give Sierra Metals ( SMTSF ) a 2% net smelter royalty. If Silverco makes an additional payment of US$5 Million, it can cut the royalty it must pay to 1%. The sale is expected to close during the second quarter.

Sierra initiated the Cusi mine sales process in September 2023. The company said the sale allows it to focus on advancing its core assets: the Yauricocha mine in Peru and the Bolivar mine in Mexico.

Sierra's share price rose 1.1% to $0.94 yesterday.