First Majestic Silver (AG.TO, AG) after trade Tuesday said it entered into a definitive agreement to sell its San Martin Silver Mine in Jalisco State, Mexico, to Flextronics Supply and Service for $90 million in cash.
The purchase price includes an upfront payment of $2.5 million upon closing, of which $500,000 has already been placed in escrow as a deposit. The remaining $87.5 million will be paid through future payments, the company said.
Under the agreement, Flextronics will acquire all of the shares of Minera El Pilon, First Majestic's wholly owned Mexican subsidiary that owns a 100% interest in the San Martin Silver Mine, the company said, adding that the transaction also includes the Jalisco Group of Properties.
The mine is a past producing silver and gold operation that came under care and maintenance by First Majestic in July 2019, according to the statement.
The deal is set to close in the fourth quarter, subject to certain closing conditions, including Mexican Antitrust approval, the company said.