This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

First Majestic Applies To Dismiss Appeal Of Positive Judgment For US$93.84 Million

NYSE - AG TSX - FR Frankfurt - FMV

VANCOUVER, Sept. 30, 2013 /PRNewswire/ -   FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") today announced further to its April 26, 2013 and July 2, 2013 news releases, that First Majestic has applied to the Court of Appeal of British Columbia for an order dismissing the appeal by Hector Davila Santos ("Hector Davila") and Minerales y Minas Mexicana, S.A. de C.V. ("MMM") of the April 24, 2013 trial judgment in favour of First Majestic in the amount of US$93.84 million.

In November 2007, the Company and its wholly-owned subsidiary, First Silver Reserve Inc. ("FSR") commenced an action against Hector Davila, the previous director, President and Chief Executive Officer of FSR with respect to the acquisition of the Bolaños Mine in Mexico. On April 24, 2013, the Supreme Court of British Columbia ruled in favour of First Majestic and FSR and ordered that Hector Davila and MMM pay to First Majestic US$93.84 million (as increased from the US$86.9 million initially ordered, to correct an error in the prior assessment).  As previously announced, the Company received CDN$14.85 million on June 28, 2013 as partial payment of the judgment.

Hector Davila and MMM appealed the April 24, 2013 decision of the Supreme Court of British Columbia. On June 27, 2013 the Court of Appeal of British Columbia ordered Hector Davila and MMM to post security or provide a letter of credit in the amount of US$79 million by September 25, 2013.  Hector Davila and MMM did not post security or provide a letter of credit and as a result, under the terms of the June 27 th ruling, First Majestic and FSR have applied to dismiss the appeal.

Additionally, the Supreme Court of British Columbia has granted orders restricting any transfer or encumbrance of the Bolaños Mine by Hector Davila or MMM and limiting mining at the Bolaños Mine. The orders also require that Hector Davila and MMM preserve net cash flow from the Bolaños Mine in a holding account and periodically provide to the Company certain information regarding the Bolaños Mine and the holding account.

There is no guarantee that the Company's application for dismissal of the appeal will be successful.  Judgment against Hector Davila 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 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,872.85 -103.46 -0.58%
S&P 500 2,077.58 -8.66 -0.42%
NASDAQ 4,924.0940 -23.3470 -0.47%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs