Court decision would put mining investment in Zacatecas Google translate version of the following article:
https://www.forbes.com.mx/decision-judicial-pondria-en-riesgo-inversion-minera-en-zacatecas/
Court decision would put mining investment in Zacatecas at risk
Due to weather conditions, the mining concession never reached a point of commercial production and, since December 2008, it has been under maintenance
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Due to a judicial decision, the firm San Pedro Resources, S.A. de C.V. it would be obliged to withdraw its investment from the municipality of Miguel Auza, in Zacatecas, and leave the source of employment of 60 families that depend on its activity adrift.
The Second Court of First Instance in Commercial Matters of the Torren Judicial District, ruled a conviction in relation to demand 320/2014, for alleged damages, of more than 23 million US dollars in favor of the plaintiff, which would cause the bankruptcy of the company.
Since 2006, San Pedro Resources has entered into a contract with the owner of the mining concession in said municipality, whereby he would be paid US $ 2,500 monthly or a royalty of 3% of the sale of the minerals extracted and commercialized from the mining concession.
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All of this is subject to an exploration and exploitation agreement, which additionally has a definitive purchase option for the mining concession by San Pedro Resources for the amount of US $ 500,000.
Due to weather conditions, the mining concession never reached a point of commercial production and, since December 2008, it has been undergoing maintenance, yet San Pedro has since tried to send the former concessionaire owner the payment of the agreed royalty considering that no There has been exploitation of the mine, but this instead, sued the company.
Sources close to the process comment that the magnitude of the fine would be historical not only in Mexico, but throughout the world, since “there is no precedent for a conviction that could be greater than the amount agreed as the price to acquire the mine concession. ; in addition, that the compensation is several times greater than any income that the royalty could or could produce ”.
The lawyers of San Pedro Resources will seek to exhaust until the last possible legal instance, since, they say, “it is obvious that such a situation will put the company in a state of bankruptcy and subsequent bankruptcy and, therefore, an imminent closure and consequent dismissal of all its collaborators and contractors, not to mention all the economic income that would be withdrawn from the Miguel Auza region and its surroundings ”.