NYSE - AG TSX - FR Frankfurt - FMV
VANCOUVER, July 2, 2013 /PRNewswire/ - 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 28 th 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.