Business
First Majestic Applies to Dismiss Appeal of Positive Judgment for US$93.84 million
NYSE - AG TSX - FR Frankfurt - FMV VANCOUVER , Sept. 30, 2013 /CNW/ -   FIRS...
About this update from First Majestic Silver Corp.
[{"type":"text","content":"\n\n\nNYSE - AG\nTSX - FRFrankfurt - FMV\n\n\nVANCOUVER, Sept. 30, 2013 /CNW/ -  FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the \"Company\" or \"First Majestic\") today announced\n further to its April 26, 2013 and July 2, 2013 news releases, that\n First Majestic has applied to the Court of Appeal of British Columbia\n for an order dismissing the appeal by Hector Davila Santos (\"Hector\n Davila\") and Minerales y Minas Mexicana, S.A. de C.V. (\"MMM\") of the\n April 24, 2013 trial judgment in favour of First Majestic in the amount\n of US$93.84 million.\n\n\nIn November 2007, the Company and its wholly-owned subsidiary, First\n Silver Reserve Inc. (\"FSR\") commenced an action against Hector Davila,\n the previous director, President and Chief Executive Officer of FSR\n with respect to the acquisition of the Bolaños Mine in Mexico. On April\n 24, 2013, the Supreme Court of British Columbia ruled in favour of\n First Majestic and FSR and ordered that Hector Davila and MMM pay to\n First Majestic US$93.84 million (as increased from the US$86.9 million\n initially ordered, to correct an error in the prior assessment).  As\n previously announced, the Company received CDN$14.85 million on June\n 28, 2013 as partial payment of the judgment.\n\n\nHector Davila and MMM appealed the April 24, 2013 decision of the\n Supreme Court of British Columbia. On June 27, 2013 the Court of Appeal\n of British Columbia ordered Hector Davila and MMM to post security or\n provide a letter of credit in the amount of US$79 million by September\n 25, 2013.  Hector Davila and MMM did not post security or provide a\n letter of credit and as a result, under the terms of the June 27th ruling, First Majestic and FSR have applied to dismiss the appeal.\n\n\nAdditionally, the Supreme Court of British Columbia has granted orders\n restricting any transfer or encumbrance of the Bolaños Mine by Hector\n Davila or MMM and limiting mining at the Bolaños Mine. The orders also\n require that Hector Davila and MMM preserve net cash flow from the\n Bolaños Mine in a holding account and periodically provide to the\n Company certain information regarding the Bolaños Mine and the holding\n account.\n\n\nThere is no guarantee that the Company's application for dismissal of\n the appeal will be successful.  Judgment agains...