Fortuna provides an update on the status of the royalty claim at the San Jose Mine, Mexico
May 28, 2021, 4:30 PM ET
VANCOUVER, British Columbia, May 28, 2021 (GLOBE NEWSWIRE) -- Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an update on the status of the royalty claim on one of its extracting mining concessions at the San Jose Mine located in Oaxaca, Mexico.
In early February 2020, the Company began legal proceedings (the "Amparo Proceedings") to contest the initiation of a cancellation procedure taken by the Direccin General de Minas ("DGM") on one of the Company's mining concessions, if a royalty claimed by the Mexican Geological Service (the "SGM") was not paid (refer to Fortuna news releases dated January 29 and March 5, 2020).
Effective May 27, 2021, the DGM provided notice to the Company of the termination of the cancellation procedure, as it has determined that the required cause for cancellation of the concession was not established. As a result, the Company has discontinued the Amparo Proceedings in the Collegiate Court in Mexico.
In light of these constructive developments, the Company is now engaged in goodwill discussions with the SGM to reach an agreement to the satisfaction of both parties with respect to the royalty claim.