First Majestic Wins Application to Dismiss Appeal
June 9, 2014
FIRST MAJESTIC SILVER CORP.
(AG: NYSE; FR: TSX) (the “Company” or
“First Majestic”) is pleased to announce that on June 5, 2014, the
Court of Appeal dismissed the appeal filed by Hector Davila Santos
(“Hector Santos”) and Minerales y Minas Mexicanas, S.A. de C.V. (“MMM”).
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 Santos and MMM. This judgment
was subsequently appealed by Hector Santos and MMM. On June 27, 2013,
the Court of Appeal for British Columbia ordered Hector Santos 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 (“the Security
As Hector Santos and MMM failed to comply with the Court’s order to post
security or provide a letter of credit, First Majestic successfully
applied for an order dismissing their appeal as abandoned. However, on
March 27, 2014, the dismissal was set aside for jurisdictional reasons.
First Majestic brought a new application to dismiss the appeal which was
heard by the Court of Appeal on April 8, 2014. On June 5, 2014, the
Court of Appeal dismissed the appeal of Hector Santos and MMM, stating
that the Court “will not condone breaches of its own orders”. The Court
also dismissed applications by Hector Santos and MMM seeking to have the
Security Order varied or set aside.
Judgment against Hector Santos 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 producing silver company focused on silver
production in Mexico and is aggressively pursuing the development of its
existing mineral property assets and the pursuit through acquisition of
additional mineral assets which contribute to the Company achieving its
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
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.