Payment of CDN$14.85 million Received in Court Litigation
July 2, 2013
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the “Company” or “First
Majestic”) is pleased to announce that further to its news release on
April 26, 2013, the Company has received payment in the amount of
CDN$14.85 million as partial payment of the judgment of US$93.84 million
granted in favour of First Majestic against Hector Davila Santos
(“Hector Davila”) and Minerales y Minas Mexicana, S.A. de C.V. (“MMM”).
Judgment was initially awarded in the amount of US$86.9 million but was
subsequently increased to US$93.84 million to correct an error in the
prior assessment. The monies received on June 28th were previously held
in a trust account of Hector Davila’s Vancouver lawyers.
The judgment by the Supreme Court of British Columbia in favour of First
Majestic in this litigation against Hector Davila and MMM is being
appealed by the defendants and thus a final resolution will depend on
the outcome of that appeal. Until such times as all appeals by the
defendants are determined, the judgment should not be regarded as final.
On June 27, 2013, the Company also received Reasons for Judgment from a
Justice of the Court of Appeal for British Columbia ordering Hector
Davila and MMM to post security for the remaining trial judgment in the
amount of US$79 million, being the approximate difference between
US$93.84 less the funds of CDN$14.85 million received or, in the
alternative, to post a letter of credit in that amount within 90 days of
this order, with liberty to apply for further directions on the form of
security, if necessary. In the event that Hector Davila and MMM fail
to comply with the order, the Company may apply for an order dismissing
the appeal. Hector Davila has seven days from the date of the order in
which to initiate an application to vary or discharge this order.
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.
FOR FURTHER INFORMATION contact email@example.com
, visit our website at www.firstmajestic.com
or call our toll free number 1.866.529.2807.
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.