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First Majestic (AG) inks US$90M deal to sell San Martin Silver Mine in Mexico

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(Neutral)
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(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

First Majestic Silver Corp. has entered into a definitive agreement to sell its 100%-owned, past producing San Martin Silver Mine in Jalisco, Mexico to Flextronics Supply and Service, S. de R.L. de C.V. for total cash consideration of US$90 million. Flextronics will acquire all shares of Minera El Pilon, which holds San Martin and the 5,245-hectare Jalisco Group of Properties. The price includes US$2.5 million at closing (with US$500,000 already in escrow), another US$2.5 million within 180 days of closing, five annual payments of US$10 million each, and a final US$35 million payment on August 31, 2032. Closing is subject to customary conditions, including Mexican Antitrust approval, and is anticipated in the fourth quarter of 2026. San Martin has been on care and maintenance since July 2019, so this agreement monetizes a non-operating asset while First Majestic continues to focus on its producing mines and development projects in Mexico and the United States.

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Insights

First Majestic moves to monetize a non-operating Mexican silver mine for US$90 million over time.

First Majestic has agreed to sell its San Martin Silver Mine and related Jalisco concessions for total cash proceeds of US$90 million. The mine has been on care and maintenance since July 2019, so this transaction converts an idle asset into a long-dated payment stream.

The structure back-ends most value: after US$2.5 million at closing and US$2.5 million within 180 days, the buyer owes five annual payments of US$10 million and a final US$35 million on August 31, 2032. This spreads counterparty and timing risk across several years.

Completion depends on customary conditions, including Mexican Antitrust approval, and is anticipated in Q4 2026. Until closing, there is execution risk around regulatory clearance and final documentation. Subsequent company filings will show whether conditions are satisfied and payments begin as scheduled.

Total consideration US$90 million Cash proceeds for San Martin Silver Mine sale
Upfront payment US$2.5 million Cash at closing; US$500,000 already in escrow
Deferred 180-day payment US$2.5 million Due within 180 days of closing
Annual payments US$10 million each On each anniversary of closing for five years
Final balloon payment US$35.0 million Due August 31, 2032
Mining concessions area 5,245 hectares Jalisco Group of Properties included in sale
Expected closing timing Q4 2026 Anticipated transaction closing period
Care and maintenance date July 2019 San Martin Silver Mine status since 2019
definitive agreement financial
"has entered into a definitive agreement (the "Agreement") dated July 6, 2026 to sell"
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.
care and maintenance financial
"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.
Mexican Antitrust approval regulatory
"Closing of the Transaction is subject to customary closing conditions, as well as Mexican Antitrust approval."
forward-looking statements regulatory
"This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Annual Information Form regulatory
"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"
A company's annual information form is a comprehensive regulatory filing that lays out its business description, key assets, risks, legal matters and other background details shareholders need to understand the company’s operations. Think of it as a detailed owner’s manual or dossier that supplements financial statements, helping investors do deeper homework on how the business works and what could affect its future performance.
wholly-owned subsidiary financial
"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"
A wholly-owned subsidiary is a company whose entire ownership is held by another company, called the parent, so the parent controls all shares, board appointments and major decisions. For investors this matters because the subsidiary’s profits, losses, assets and liabilities are treated as part of the parent’s financial picture, affecting valuation and risk exposure — imagine a parent owning a single storefront outright and consolidating its receipts and bills into the parent’s books.
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FAQ

What transaction did First Majestic Silver (AG) announce regarding the San Martin Silver Mine?
First Majestic agreed to sell its 100%-owned San Martin Silver Mine and associated Jalisco properties to Flextronics for total cash proceeds of US$90 million, converting a past producing, non-operating asset into a structured payment stream spread over several years.

How is the US$90 million consideration for AG’s San Martin mine sale structured?
The price includes US$2.5 million at closing, US$2.5 million within 180 days, five annual payments of US$10 million each starting on the first anniversary of closing, and a final US$35 million payment due on August 31, 2032.

What conditions must be met before First Majestic’s San Martin transaction can close?
Closing is subject to customary conditions and Mexican Antitrust approval. The company states it anticipates the transaction will close in the fourth quarter of 2026, assuming all required approvals and closing conditions are satisfied or waived.

What assets are included in First Majestic’s sale of the San Martin operation?
Flextronics will acquire all shares of Minera El Pilon, S.A. de C.V., which holds a 100% interest in the San Martin Silver Mine and the Jalisco Group of Properties, covering approximately 5,245 hectares of mining concessions in Jalisco State, Mexico.

How does the San Martin Silver Mine currently fit into First Majestic Silver’s portfolio?
San Martin is described as a past producing silver and gold operation placed on care and maintenance in July 2019. First Majestic’s producing assets now include four underground mines in Mexico plus the Jerritt Canyon Gold project in Nevada and its own minting business.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of: July 2026

Commission File Number: 001-34984

FIRST MAJESTIC SILVER CORP.
(Translation of registrant's name into English)

Suite 1800 - 925 West Georgia Street
Vancouver, British Columbia V6C 3L2
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F [   ]      Form 40-F [ X ]

DOCUMENTS FILED AS PART OF THIS FORM 6-K

Exhibit   Description
   
99.1   News Release dated July 7, 2026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FIRST MAJESTIC SILVER CORP.  
(Registrant)  
   
/s/ Samir Patel  
Samir Patel  
General Counsel & Corporate Secretary  
   
July 7, 2026  

NEWS RELEASE

New York - AG July 7, 2026
Toronto - AG  
Frankfurt - FMV  

First Majestic Enters into Definitive Agreement to Sell its

San Martin Silver Mine for Total Proceeds of US$90 Million

Vancouver, BC, Canada - 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.

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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.

2

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.

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Source: View Original Filing on SEC EDGAR

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