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First Majestic Silver to Appeal Circuit Court Decision to Nullify APA
VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) -- First Majestic Silver Corp. ("First Majestic" or the "Company") announced today that its Mexican
About this update from First Majestic Silver Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) -- First Majestic Silver Corp. (\"First Majestic\" or the \"Company\") announced today that its Mexican subsidiary Primero Empresa Minera, S.A. de C.V. (“PEM”) has now been provided with written reasons for the decision made on September 23, 2020 by the Mexican Federal Court on Administrative Matters (“Federal Court”), nullifying the Advance Pricing Agreement (“APA”) concluded in 2012 between PEM and the Mexican tax authority, Servicio de Administracion Tributaria (“SAT”). The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA with retroactive effect, for the following key reasons (i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and (ii) SAT’s failure to request from PEM certain additional information before issuing the APA. The Company’s legal advisors having now reviewed the written reasons continue to be of the view that the Federal Court’s decision is flawed both due to procedural irregularities and failure to address the relevant evidence and legal authorities. The Company intends to appeal the decision to the Circuit Courts by the December 1, 2020 deadline. The Company continues to seek an amicable resolution of its dispute with the Government of Mexico including by diplomatic channels of resolution. In addition, as previously disclosed, on May 13, 2020 the Company served a Notice of Intent to Submit a Claim on the Government of Mexico under the provisions of the North American Free Trade Agreement (“NAFTA”). The Company therefore continues to maintain the option of seeking a resolution of its dispute with the Government of Mexico through international arbitration. ABOUT THE COMPANY First Majestic is a publicly traded mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine. Production from these mines are projected to be between 11.0 to 11.7 million silver ounces or 21.4 to 22.9 million silver equivalent ounces in 2020. FOR FURTHER INFORMATION contact [email protected], visit our website at www.firstmajestic.com or call our to...