First Majestic Silver Corp. agreed to sell its San Martin silver mine in Jalisco, Mexico, to Flextronics Supply and Service for $90 million [1].

The divestment allows the company to monetize non-core assets to generate liquidity. These funds are earmarked for the reopening of the Jerritt Canyon mine [3].

The transaction was finalized as an all-cash deal [1]. The San Martin mine is described as a past-producing asset [4]. According to reporting from The Deep Dive, the mine had been idled for 10 years [5].

First Majestic Silver, which trades on the NYSE and TSX under the ticker AG, is positioning its portfolio to prioritize active production sites. The sale of the Mexican asset represents a strategic shift toward higher-yield opportunities.

"First Majestic Silver (TSX:AG,NYSE:AG) has agreed to sell its past-producing San Martin silver mine in Mexico for US$90 million in cash," The Deep Dive said [4].

The company's move to offload the Jalisco property comes as part of a broader effort to streamline operations. By converting an idle property into immediate capital, the firm avoids the overhead associated with maintaining non-operational sites, and secures the necessary funding for Jerritt Canyon [3].

“First Majestic Silver Corp. agreed to sell its San Martin silver mine in Jalisco, Mexico, to Flextronics Supply and Service for $90 million”

This transaction signals a pivot in First Majestic Silver's capital allocation strategy. By selling a dormant asset in Mexico to fund a specific reopening project, the company is trading long-term speculative land holdings for immediate operational growth. This reduces the company's footprint in Jalisco while concentrating resources on assets with more immediate production potential.