NYSE – AGTSX – FR Frankfurt – FMV
VANCOUVER, June 9, 2014 /PRNewswire/ - FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is pleased to announce that on June 5, 2014, the Court of Appeal dismissed the appeal filed by Hector Davila Santos ("Hector Santos") and Minerales y Minas Mexicanas, S.A. de C.V. ("MMM").
As previously announced, on April 24, 2013 the Supreme Court of British Columbia awarded judgment of US$93.84 million in favour of First Majestic in the litigation against Hector Santos and MMM. This judgment was subsequently appealed by Hector Santos and MMM. On June 27, 2013, the Court of Appeal for British Columbia ordered Hector Santos and MMM to post security for the unpaid trial judgment in the amount of US$79 million, (being the approximate difference between the judgment amount of US$93.84 million, less the funds of CDN$14.85 million previously received by First Majestic) or in the alternative to post a letter of credit in that amount within 90 days of the order ("the Security Order").
As Hector Santos and MMM failed to comply with the Court's order to post security or provide a letter of credit, First Majestic successfully applied for an order dismissing their appeal as abandoned. However, on March 27, 2014, the dismissal was set aside for jurisdictional reasons.First Majestic brought a new application to dismiss the appeal which was heard by the Court of Appeal on April 8, 2014. On June 5, 2014, the Court of Appeal dismissed the appeal of Hector Santos and MMM, stating that the Court "will not condone breaches of its own orders". The Court also dismissed applications by Hector Santos and MMM seeking to have the Security Order varied or set aside. Judgment against Hector Santos 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 producing silver company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its corporate growth objectives. FIRST MAJESTIC SILVER CORP.