First Majestic Silver (AG) has entered into an agreement to divest its San Martin silver mine, situated in Mexico, to the private entity Flextronics Supply and Service. The transaction, disclosed on Tuesday, is valued at $90 million in cash.
The financial terms of the deal specify an initial payment of $2.5 million in upfront consideration. The remaining $87.5 million of the total $90 million cash consideration is structured as future payments, as per the company’s announcement.
This sale represents a notable portfolio adjustment for First Majestic Silver, shifting a key asset into liquid capital. The acquisition by Flextronics Supply and Service, a private company, underscores the continued interest in established mining operations within the region. For First Majestic, the deal provides significant financial flexibility, converting a mining operation into substantial cash, albeit with a deferred payment schedule.
The $90 million cash deal, with its clear breakdown of upfront and future payments, is expected to impact First Majestic Silver’s financial position and strategic direction as it continues to optimize its global silver mining endeavors.
