Fortuna sells San Jose mine to Peru’s JRC Ingeniería
Canadian miner Fortuna Mining has completed the sale of its 100% interest in Compañía Minera Cuzcatlan, owner of the San Jose silver mine in Oaxaca, Mexico, to Peruvian firm JRC Ingeniería y Construcción in a deal worth up to $16-million.
The transaction closed concurrently with the signing of a definitive share purchase agreement, under which JRC will pay Fortuna $6.5-million upfront, plus about $1.2-million for pre-paid working capital items and tax receivables by the end of April. An additional $8.3-million is contingent on meeting certain conditions.
Fortuna will also retain a 1% net smelter royalty (NSR) on future production from the San Jose mine. The royalty becomes payable after the extraction of 6.1-million ounces of silver and 44 000 oz of gold, or 119 000 gold-equivalent ounces.
Once a top-12 global primary silver producer, the San Jose mine was placed on care and maintenance in December last year, owing to rising operating costs and depleted mineral reserves. Although a small mineral resource inventory remains, it no longer meets Fortuna’s reserve classification criteria.
“This transaction is part of our ongoing strategy to streamline the portfolio and focus on core assets,” Fortuna said.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Avlock International is a leading manufacturer and distributor of Specialized Fastening Systems.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
