Fortuna announces sale of non-core San Jose Mine, Mexico

Transaction Overview - Fortuna Mining Corp has entered into a binding letter agreement to sell its 100% interest in Compañia Minera Cuzcatlan S A de C V to Minas del Balsas S A de C V [1] - Cuzcatlan owns a 100% interest in the San Jose Mine in Oaxaca, Mexico, which was scheduled to initiate a progressive closure process starting in early 2025 [1] - Following the sale, Fortuna will cease to have any interest in the San Jose Mine, except for a net smelter return royalty [1] Management Commentary - The San Jose Mine was developed into one of the 12 largest primary silver producers in the world during Fortuna's 13-year operation [2] - The mine is no longer a core asset in Fortuna's portfolio, and the company believes Minera del Balsas is well suited to continue extracting value [2] - The transaction allows Fortuna to focus on higher value opportunities within its portfolio [2] Transaction Details - MDB will acquire all issued and outstanding shares of Cuzcatlan held by Fortuna's subsidiaries [3] - Fortuna will receive a 1 0% net smelter royalty on production from the San Jose Mine concessions for a 5-year term [3] - The transaction is expected to be completed in the first quarter of 2025, subject to customary closing conditions [4] Financial Terms - US$2 million payable on closing of the Transaction [8] - A further US$2 million payable on the first anniversary of closing the Transaction [8] - A final US$2 million payable on the second anniversary of closing the Transaction [8] - The right to receive up to approximately US$11 million upon the completion of certain conditions [8] Company Overview - Fortuna Mining Corp is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d'Ivoire, Mexico, and Peru [5] - The company also has the Diamba Sud Gold Project in Senegal at the preliminary economic assessment stage [5] - Fortuna produces gold and silver, focusing on efficient production, environmental protection, and social responsibility [5]