11:43 AM EST, 01/15/2025 (MT Newswires) -- (Updates shares.)

Fortuna Mining ( FSM ) on Wednesday said it agreed to sell Compania Minera Cuzcatlan, which owns the San Jose mine in Mexico, to Minas de Balsas.

MDB will acquire all of Cuzcatlan's outstanding shares for US$2 million to be paid at closing and US$2 million payable on the second anniversary of the deal closing. Fortuna will receive up to about US$11 million upon the completion of certain conditions and will also get a 1% net smelter royalty on production from the San Jose mine concessions for a five-year term as of the start of production.

"Today, San Jose is no longer a core asset in our portfolio, and we believe Minera del Balsas is well suited to continue extracting value, benefiting both employees and local stakeholders," said Fortuna chief executive Jorge Ganoza. "This transaction allows us to focus management's efforts on higher value opportunities within our portfolio."

The deal is scheduled to close in the first quarter.

Fortuna's shares were last seen down $0.23 to $6.32 on the Toronto Stock Exchange.

Price: 6.29, Change: -0.26, Percent Change: -3.97