First Majestic Silver Corp. announced this Thursday that its Mexican subsidiary Primero Empresa Minera (PEM) has the reasons in writing for the decision taken on September 23, 2020 by the Mexican Federal Court in Administrative Matters, annulling the Advance Price Agreement ( APA) held in 2012 between PEM and the Tax Administration Service (SAT).
The Federal Court decision orders the SAT to reexamine the evidence and the basis for issuing the APA with retroactive effect, for the following key reasons: first, the errors of the SAT in analyzing the PEM application for the APA and the evidence provided in support of the request; secondly, the fact that the SAT did not request certain additional information from PEM before issuing the APA.
First Majestic’s legal advisers, having now reviewed the written reasons, continue to believe that the Federal Court’s decision is flawed both by procedural irregularities and by failing to address relevant evidence and legal authorities.
First Majestic intends to appeal the decision to the Circuit Courts before the December 1, 2020 deadline.
Likewise, the company continues to seek an amicable resolution of its dispute with the Government of Mexico, including through diplomatic resolution channels.
Additionally, as previously disclosed, First Majestic delivered on May 13, 2020 a Notice of Intent to File a Claim to the Government of Mexico under the provisions of the North American Free Trade Agreement (NAFTA).
Therefore, the company continues to maintain the option of seeking a resolution of its dispute with the Government of Mexico through international arbitration.
First Majestic is a mining company that focuses on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets.
The company currently owns and operates the San Dimas gold/silver mine, the Santa Elena gold/silver mine and the La Encantada silver mine.
Production from these mines is projected to be between 11.0 to 11.7 million silver ounces or 21.4 to 22.9 million silver equivalent ounces in 2020.