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First Majestic Enters into Definitive Agreement to Sell its San Martin Silver Mine for Total Proceeds of US$90 Million

First Majestic sells the San Martin project for $90 million to streamline its portfolio and focus on core operations.

By The Northwire Desk — AI Analysis Jul 07, 2026 · 16:37 AG · 23.33 First Majestic Silver Corp.

Executive Summary

First Majestic Silver Corp. has entered a definitive agreement to sell its 100%-owned San Martin Silver Mine and associated Jalisco Group of Properties to Flextronics Supply and Service, S. de R.L. de C.V., a part of Meridian Capital, for total proceeds of US$90 million. The transaction encompasses Minera El Pilon, S.A. de C.V., the San Martin mine, which has been under care and maintenance since July 2019, and 5,245 hectares of mining concessions in Jalisco, Mexico.

The payment structure is heavily deferred, with US$2.5 million due upfront at closing and another US$2.5 million payable 180 days post-closing. The company will receive US$10 million annually for five years, followed by a final US$35.0 million payment on August 31, 2032. Closing is targeted for Q4 2026, subject to customary conditions and Mexican antitrust approval. No direct executive quotes were provided in the release.

Material Impact

First Majestic Silver Corp. (AG) is divesting the San Martin asset as part of a strategic portfolio cleanup rather than a transformative financial event. The mine has been under care and maintenance since 2019, generating no revenue while incurring carrying costs. The transaction features a deferred payment structure that limits the immediate balance sheet impact, with only US$2.5 million received upfront and US$87.5 million spread over six years, introducing counterparty risk and delaying cash realization.

Given the company’s fortress balance sheet, which holds approximately US$1.13 billion in cash, the sale does not fund operations or de-leverage the business. It simply removes a non-core, dormant asset. The market has already priced in a roughly 44% decline from the February 2026 highs, making this news a minor positive within a broader downtrend that does not alter the core investment thesis or valuation multiple.

AG · Price

Company Overview

First Majestic Silver Corp. (AG) operates four producing underground mines in Mexico: Los Gatos (70% JV), Santa Elena, San Dimas, and La Encantada. The company is also advancing the restart of the Jerritt Canyon Gold Mine in Nevada, targeting H2 2027 production. Its jurisdictional focus is primarily Mexico, with a secondary asset in the USA. Management is led by CEO Keith Neumeyer, COO David Howe, and President Mani Alkhafaji.

Read the original news release →

First Majestic Enters into Definitive Agreement to Sell its San Martin Silver Mine for Total Proceeds of US$90 Million

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