Fortuna Mining (FSM) said Wednesday it has agreed to sell its 100% interest in Compania Minera Cuzcatlan to Minas del Balsas, a privately-held miner based in Mexico.

Under the terms of the agreement, Minas del Balsas pay $2 million for the silver mine, located in Oaxaca, Mexico, on closing, $2 million after one year from closing, and $2 million after the second year, Fortuna said.

Fortuna will also receive up to $11 million upon the completion of certain conditions, and a 1% royalty on silver production at the mine for five years after the start of production, the company said.

The deal is expected to close in Q1.