FSM Divests San Jose Mine, Signs Agreement to Sell Yaramoko Mine

Core Insights - Fortuna Mining Corp. has completed the sale of its non-core San Jose mine in Mexico and is exiting Burkina Faso by selling the Yaramoko mine, indicating a strategic shift in its operations [1][5] Sale of San Jose Mine - The San Jose mine was operated for thirteen years, producing 2.5 million ounces of silver and 17,811 ounces of gold in 2024, but was placed on care and maintenance due to high operating costs and depleting reserves [2] - The buyer, RC Ingeniería y Construcción S.A.C., paid an upfront amount of $6.5 million, with an additional$1.2 million expected by April 30, 2025, and potential future payments of up to $8.3 million [3][4] Exit from Burkina Faso - Fortuna Mining has signed an agreement to sell its interest in Roxgold Sanu SA, which owns the Yaramoko mine, and other subsidiaries, with the deal expected to close in the second quarter of 2025 [5] - Yaramoko produced 116,206 ounces of gold in 2024 and 33,073 ounces in the first quarter of 2025, but had a remaining mine life of only one and a half years as of December 31, 2024 [6] Financial Implications - The sale of Yaramoko will save Fortuna Mining approximately$20 million in future mine closure liabilities and provide additional liquidity for strategic objectives [7] - Fortuna Mining will receive around $130 million from the Yaramoko sale, including$70 million at closing and $57.5 million in cash dividends, along with potential value-added tax receivables [8] Future Operations - Post-sale, Fortuna Mining will no longer have operations in Burkina Faso and will focus on its remaining assets, including the Séguéla mine in Côte d'Ivoire, Lindero mine in Argentina, and Caylloma mine in Peru [9] Stock Performance - Fortuna Mining shares have increased by 41.5% over the past year, contrasting with a 17.7% decline in the industry [11]