Appeal Against First Majestic Dismissed
NYSE – AG
TSX – FR
Frankfurt – FMV
VANCOUVER, Oct. 24, 2013 /PRNewswire/ – FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the “Company” or “First Majestic”) is pleased to
announce that further to its news release on September 30, 2013, the
Court of Appeal has dismissed the appeal of Hector Davila Santos
(“Hector Davila”) and Minerales y Minas Mexicanas, S.A. de C.V.
As previously announced, on April 24, 2013 the Supreme Court of British
Columbia awarded judgment of US$93.84 million in favour of First
Majestic in the litigation against Hector Davila and MMM. This
judgment was subsequently appealed by Hector Davila and MMM. On June
27, 2013, the Court of Appeal for British Columbia ordered Hector
Davila and MMM to post security for the unpaid trial judgment in the
amount of US$79 million, (being the approximate difference between the
judgment amount of US$93.84 million, less the funds of CDN$14.85
million previously received by First Majestic) or in the alternative to
post a letter of credit in that amount within 90 days of the order,
with liberty to apply for further directions on the form of security,
if necessary. As Hector Davila and MMM did not post security or provide
a letter of credit, the Company applied for an order dismissing their
appeal. On October 23, 2013, the Company received the Court of
Appeal’s Reasons for Judgment dismissing their appeal (“the Dismissal
Order”). Hector Davila and MMM have seven days from the date of the
Dismissal Order in which to initiate an application to vary or
discharge the Dismissal Order.
Judgment against Hector Davila and MMM should not be regarded as final
until such time as all avenues for appeal have been exhausted and the
Company cautions that even if the results of all such appeals are in
the Company’s favour it may have to take additional action in Mexico
and/or Canada to try to recover the unpaid portion of the judgment. The
outcome of any such action is not presently determinable.
First Majestic is a mining company focused on silver production in
México and is aggressively pursuing its business plan of becoming a
senior silver producer through the development of its existing mineral
property assets and the pursuit through acquisition of additional
mineral assets which contribute to the Company achieving its aggressive
corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain “Forward-Looking Statements” within
the meaning of the United States Private Securities Litigation Reform
Act of 1995 and applicable Canadian securities laws. When used in this
news release, the words “anticipate”, “believe”, “estimate”, “expect”,
“target”, “plan”, “forecast”, “may”, “schedule” and similar words or
expressions, identify forward-looking statements or information. These
forward-looking statements or information relate to, among other
things: additional court proceedings and recovery of judgment amounts.
These statements reflect the Company’s current views with respect to
future events and are necessarily based upon a number of assumptions
and estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies. Many factors,
both known and unknown, could cause actual results, performance or
achievements to be materially different from the results, performance
or achievements that are or may be expressed or implied by such
forward-looking statements or information and the Company has made
assumptions and estimates based on or related to many of these factors.
Such factors include, without limitation: availability of time on court
calendars in Canada and elsewhere; the recognition of Canadian
judgments under Mexican law; the possibility of settlement discussions;
the risk of appeal of judgment; and the insufficiency of the
defendants’ assets to satisfy the judgment amount.
Investors are cautioned against attributing undue certainty to
forward-looking statements or information. Although the Company has
attempted to identify important factors that could cause actual results
to differ materially, there may be other factors that cause results not
to be anticipated, estimated or intended. The Company does not intend,
and does not assume any obligation, to update these forward-looking
statements or information to reflect changes in assumptions or changes
in circumstances or any other events affecting such statements or
information, other than as required by applicable law.
SOURCE First Majestic Silver Corp.