Fortuna Mining Acquires La Joya Project Concession
By Paloma Duran | Journalist and Industry Analyst -
Mon, 08/26/2024 - 16:29
Plata Latina Minerals Corporation has announced that its subsidiary, Plaminco, has finalized an agreement with a subsidiary of Fortuna Mining, transferring it the mining concession for the La Joya Project in Hidalgo. In return, Plata Latina will receive a 2% royalty on the Net Smelter Returns ("NSR") from the project, starting from the commencement of commercial production.
“We are pleased to maintain exposure to the future potential of the La Joya Project, while adding another royalty to our portfolio. We now have two royalties as we continue our strategic review and explore transformative opportunities. With both cash and cash flow, we are carefully assessing various prospects,” said Letitia Wong, President and CEO, Plata Latina.
Plata Latina also holds a royalty agreement with a subsidiary of Fresnillo plc for the Naranjillo Property, located in Guanajuato. The company receives advance royalty payments of US$100,000 until either US$1,000,000 in advance payments have been made or Naranjillo starts commercial mineral production.
Fortuna Mining in Mexico
On March 11, 2024, MBN reported on Fortuna’s decision to cease operations in 2024 at its San José mine, six months ahead of schedule, as the company was planning to close operations by mid-2025. The company said this decision was made due to the increasing costs and depleted reserves.
Fortuna continues active drilling as management plans an extended mine closure and monitoring program. The company outlined three scenarios: continuing exploitation if the project is successful, placing the mine on care and maintenance while continuing Yessi vein exploration, or exhausting reserves this year and implementing a progressive closure plan.
The company noted that the closure of the San Jose mine could impact the livelihoods of 5,800 direct and indirect employees in San Jose del Progreso municipality. San Jose's production during 2Q24 stood at 990,574oz of silver and 92,716oz of gold marking a 22% and 44% increase, respectively, from 2Q23.
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