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

Rhea-AI Summary

First Majestic (NYSE:AG) entered a definitive agreement on July 6, 2026 to sell its 100%-owned past producing San Martin Silver Mine in Jalisco, Mexico to Flextronics for total cash consideration of US$90 million.

Payments include US$2.5M at closing, US$2.5M within 180 days, US$10M annually for five years, and US$35M on August 31, 2032, subject to customary conditions and Mexican antitrust approval. Closing is expected in Q4 2026.

Positive

• Total cash consideration of US$90 million for San Martin and Jalisco properties
• Structured cash inflows including US$50 million over five anniversary payments
• Additional lump-sum payment of US$35 million due August 31, 2032
• Monetization of a past producing mine under care and maintenance since July 2019

Negative

• Only US$2.5 million payable at closing, with most proceeds deferred
• Transaction closing subject to customary conditions and Mexican antitrust approval
• Significant portion of consideration deferred until August 31, 2032

News Market Reaction – AG

-3.95%

15 alerts

-3.95% Session close to close

-8.9% Trough in 25 hr 12 min

$8.80B Market Cap

0.5x Rel. Volume

In the Jul 8 session, AG declined 3.95%, reflecting a moderate negative market reaction. Argus tracked a trough of -8.9% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The announced San Martin divestiture converts a past-producing asset into staged cash payments. Agai...

Analysis

The announced San Martin divestiture converts a past-producing asset into staged cash payments. Against a backdrop of generally favorable reactions to prior news and low short interest, investors may focus on payment timing and counterparty execution risk.

Key Figures

San Martin sale proceeds: US$90 million Upfront payment at closing: US$2.5 million Escrow deposit: US$500,000 +5 more

8 metrics

San Martin sale proceeds US$90 million Total cash consideration for San Martin Silver Mine sale

Upfront payment at closing US$2.5 million Cash due on closing of San Martin Transaction

Escrow deposit US$500,000 Portion of upfront payment already deposited into escrow

Future payments US$87.5 million Additional cash consideration payable after closing

Payment within 180 days US$2.5 million Cash due within 180 days of closing

Annual payments US$10 million Each anniversary of closing from year 1 to year 5

Total anniversary payments US$50.0 million Aggregate of five annual US$10 million payments

Final payment date US$35.0 million on August 31, 2032 Final installment of San Martin consideration

Historical Context

5 past events · Latest: Jun 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 25	development update	Positive	+2.4%	Construction permits and added investment to advance Santo Niño and Navidad access.
Jun 22	asset divestiture	Neutral	-1.3%	Closing of Del Toro mine sale to Sierra Madre with staged cash and share consideration.
Jun 10	AGM results	Positive	+7.7%	Shareholders approved all AGM items, including board slate, auditor, and compensation.
May 12	earnings report	Positive	+2.7%	Strong Q1 2026 results with record revenue, earnings, free cash flow and higher dividend.
Apr 29	sustainability report	Positive	+4.0%	Release of 2025 Sustainability Report highlighting lower carbon intensity and ESG metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent company news has generally coincided with positive share-price reactions following operational, financial, and ESG updates.

Key Terms

definitive agreement, escrow, mining concessions, care and maintenance, +1 more

5 terms

definitive agreement financial

"it has entered into a definitive agreement (the "Agreement") dated July 6, 2026"

A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.

escrow financial

"US$500,000 of this amount has already been deposited into escrow as a deposit"

A neutral third party holds money, documents, or assets until both sides in a transaction meet agreed conditions, like a safety deposit box that only opens when everyone fulfills the rules. For investors, escrow reduces risk and increases certainty by ensuring payments or shares are released only when contractual steps are completed, which affects deal timing, legal protection, and the likelihood that a transaction will close as planned.

mining concessions technical

"consisting of 5,245 hectares of mining concessions owned by El Pilon"

Mining concessions are government-granted rights to explore for and extract minerals from a specified piece of land, similar to a lease or deed that allows a business to operate on a plot. For investors they matter because these rights determine whether a company can legally access mineral reserves, how long it can operate, what fees or royalties apply, and how easily the asset can be sold or financed, all of which affect potential revenues and risks.

care and maintenance technical

"operation that was placed under care and maintenance by First Majestic in July 2019"

A temporary status where a facility, project, or asset is shut down but kept in a safe, operable condition through regular oversight, basic repairs, and minimal staffing so it can be restarted later. Think of it like mothballing a car in a garage: you stop using it but keep the battery charged, fluids topped, and rust prevented so it won’t deteriorate beyond repair. For investors, care and maintenance affects ongoing costs, regulatory and environmental liabilities, and how quickly operations can resume, which in turn influences future cash flow and asset value.

antitrust regulatory

"subject to customary closing conditions, as well as Mexican Antitrust approval"

Antitrust are laws and government actions that stop companies from unfairly dominating markets, fixing prices, or blocking competitors — think of a referee preventing one player from hogging the ball so the game stays fair. Investors care because antitrust investigations, fines, or orders to change business practices can reduce revenue, raise costs, or limit growth, which directly affects a company’s risk profile and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Vancouver, British Columbia--(Newsfile Corp. - July 7, 2026) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce that it has entered into a definitive agreement (the "Agreement") dated July 6, 2026 to sell its 100%-owned past producing San Martin Silver Mine located 250 kilometres north of Guadalajara city in Jalisco State, Mexico, in the San Martin de Bolaños mining district, ("San Martin"), to Flextronics Supply and Service, S. de R.L. de C.V ("Flextronics"), a private Mexican company, for total cash consideration of US$90 million (the "Transaction"), comprised of upfront consideration of US$2.5 million payable upon closing of the Transaction (US$500,000 of this amount has already been deposited into escrow as a deposit), and an additional US$87.5 million in future payments.

TRANSACTION DETAILS

The Agreement provides that, subject to satisfaction and waiver of certain conditions described below, Flextronics will acquire all of the issued and outstanding shares of Minera El Pilon, S.A. de C.V. ("El Pilon"), a wholly-owned subsidiary of First Majestic incorporated under the laws of Mexico that holds a 100% interest in San Martin. The acquisition also includes the Jalisco Group of Properties, consisting of 5,245 hectares of mining concessions owned by El Pilon, and located in the municipalities of Etzatlán and Tototlán, Jalisco. In exchange, Flextronics is required to make the following payments to First Majestic:

• US$2.5 million in cash at closing (US$500,000 of this amount has already been deposited into escrow as a deposit);
• US$2.5 million in cash within 180 days of closing;
• US$10 million in cash on each anniversary date of closing, commencing on the first anniversary of closing and continuing each subsequent anniversary thereafter until and including the fifth anniversary date of closing (by which time, a total of $US50.0 million in anniversary payments would have been paid);
• US$35.0 million on August 31, 2032.

Closing of the Transaction is subject to customary closing conditions, as well as Mexican Antitrust approval. First Majestic anticipates that the Transaction will close in the fourth quarter of 2026.

The San Martin Silver Mine is a past producing silver and gold operation that was placed under care and maintenance by First Majestic in July 2019. Flextronics is part of Meridian Capital, a diversified investment group focused on the mining and oil & gas sectors, with development projects across Mexico, including Sonora and Sinaloa, as well as in Venezuela and Uruguay.

ABOUT FIRST MAJESTIC

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates four producing underground mines in Mexico: the Santa Elena Silver/Gold Mine, the Los Gatos Silver Mine (the Company holds a 70% interest in the Los Gatos Joint Venture that owns and operates the mine), the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.

First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.

For further information, contact info@firstmajestic.com visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

"signed"

Keith Neumeyer, CEO

Cautionary Note Regarding Forward Looking Statements

This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements". Forward-looking statements include, but are not limited to: completion of the Transaction; all future payments due after closing of the Transaction; the satisfaction and waiver of certain closing conditions, including the receipt of Mexican Antitrust approval and the timing for such approval; and the expected timing of closing of the Transaction. These statements are based on the Company's assumptions that all conditions to closing of the Transaction will be satisfied in a timely manner. These assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Actual results may vary from forward-looking statements.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the parties' ability to satisfy the conditions of closing of the Transaction, as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2025 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2025 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304329

FAQ

What did First Majestic (NYSE:AG) announce about the sale of its San Martin Silver Mine?

First Majestic announced a definitive agreement to sell its 100%-owned San Martin Silver Mine for total cash consideration of US$90 million. According to First Majestic, the buyer is Flextronics, part of Meridian Capital, with closing targeted for the fourth quarter of 2026.

What are the payment terms of First Majestic’s US$90 million San Martin sale agreement (AG)?

The US$90 million consideration is payable through staged cash payments. According to First Majestic, terms include US$2.5M at closing, US$2.5M within 180 days, US$10M annually for five years, and a final US$35M payment due on August 31, 2032.

When is the First Majestic (AG) sale of the San Martin mine expected to close?

Closing of the San Martin sale is expected in the fourth quarter of 2026. According to First Majestic, completion remains subject to customary closing conditions, including required Mexican antitrust approval, before Flextronics acquires the San Martin assets and related Jalisco Group of Properties.

Who is buying First Majestic’s San Martin Silver Mine and related Jalisco properties?

The buyer is Flextronics Supply and Service, S. de R.L. de C.V, a private Mexican company. According to First Majestic, Flextronics is part of Meridian Capital, a diversified investment group with mining and oil and gas development projects across Mexico and other Latin American countries.

What assets are included in First Majestic’s San Martin Transaction with Flextronics (AG)?

Flextronics will acquire all shares of Minera El Pilon, which holds 100% of San Martin. According to First Majestic, the deal also includes the Jalisco Group of Properties, comprising 5,245 hectares of mining concessions in the municipalities of Etzatlán and Tototlán, Jalisco.

Is First Majestic’s San Martin Silver Mine currently producing before the sale?

San Martin is a past producing silver and gold operation and is not currently producing. According to First Majestic, the mine was placed under care and maintenance in July 2019, and the pending sale monetizes this non-operating asset through long-dated cash payments.