Silver Bull Provides Update On Its Arbitration Case Against Mexico
Rhea-AI Summary
Silver Bull Resources has filed its Reply to Mexico's Counter-Memorial in an ongoing international arbitration case. The dispute, initiated in June 2023 under USMCA and NAFTA, centers on Mexico's alleged failure to address an illegal blockade of the Sierra Mojada Project since September 2019.
The company seeks US$374.9 million in damages (including interest), claiming Mexico's inaction led to a complete loss of investment. The case will proceed to a hearing on October 6, 2025, after Mexico files its Rejoinder by August 26, 2025.
The Sierra Mojada deposit contains significant resources: 5.35 billion pounds of zinc and 87.4 million ounces of silver. The dispute arose when local miners initiated an illegal blockade demanding unearned royalty payments. Despite favorable Mexican court rulings, the government's failure to enforce the law has effectively prevented Silver Bull from accessing the site for over five years.
Positive
- Company secured US$9.5M litigation funding from Bench Walk Advisors to finance the arbitration case
- Significant potential compensation claim of US$374.9M (including interest) against Mexico
- Substantial mineral resource: 5.35B pounds of zinc and 87.4M ounces of silver at Sierra Mojada
- Hired experienced international law firm Boies Schiller Flexner for arbitration
Negative
- Complete loss of investment in Sierra Mojada Project due to ongoing illegal blockade since 2019
- No access to mining site for over 5 years, preventing all business operations
- Mexican government's inaction led to effective expropriation of the project
- Sierra Mojada is company's only asset, meaning 100% operational shutdown
- Destruction of shareholder value due to inability to develop the project
News Market Reaction 1 Alert
On the day this news was published, SVBL gained 6.41%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, BC / ACCESS Newswire / April 30, 2025 / Silver Bull Resources, Inc. (OTCQB:SVBL)(TSX:SVB) ("Silver Bull" or the "Company") provides an update on the progress of its international arbitration claim against the United Mexican States ("Mexico").
Silver Bull announces that it has filed its Reply to Mexico's Counter-Memorial in the arbitration that Silver Bull initiated on 28 June 2023 under the United States-Mexico-Canada Agreement ("USMCA") and the North American Free Trade Agreement ("NAFTA") before the International Center for the Settlement of Investment Disputes ("ICSID"). Under the current schedule, Mexico now has until August 26, 2025 to file its Rejoinder before the case proceeds to a hearing, which will commence on October 6, 2025.
A summary of the key points of Silver Bull's claim is provided below:
The arbitration arises from Mexico's refusal to take action with respect to the illegal blockade of Silver Bull's Sierra Mojada Project, which commenced in September 2019 and remains ongoing. Mexico's actions and omissions led to the complete loss of Silver Bull's investment, and breached Mexico's obligations under the NAFTA, including the prohibition on unlawful expropriation and the duties to provide full protection and security, fair and equitable treatment, national treatment and most-favored nation treatment.
Silver Bull commenced the arbitration by filing a Request for Arbitration with ICSID on 28 June 2023. A three-person arbitration panel (the "Tribunal") was appointed by ICSID and they will adjudicate the case. Silver Bull filed its Memorial on 17 June 2024, setting out its claim in full and presenting supporting evidence. Mexico filed its Counter-Memorial on 23 December 2024, setting out its defence and presenting its evidence in response to the claim.
In the Reply filed on April 25, 2025, Silver Bull responded to Mexico's Counter-Memorial and provided further evidence to support its claim. In its Reply, Silver Bull updated its damages claim to US
$374.9M (including interest), supported by the opinion of its damages expert.
Mexico will file its Rejoinder, responding to Silver Bull's Reply, on 26 August 2025. The hearing in the arbitration will take place from 6-10 October 2025.
The Company hired Boies Schiller Flexner (UK) LLP ("BSF") to act on its behalf as legal counsel for the claim. BSF is an international law firm with extensive experience in international investment arbitration concerning mining and other natural resources. The BSF team is led by Timothy L. Foden, a noted practitioner in the mining arbitration space.
Silver Bull is financially supported by Bench Walk Advisors LLC via a Litigation Funding Agreement for up to US
$9.5 million to finance the case and the running of the Company.
Silver Bull's CEO, Mr. Tim Barry commented, "While Silver Bull had intended to continue developing the Sierra Mojada Project, an illegal blockade initiated in September 2019 by a small group of local miners - seeking to extort an unearned royalty payment from the Company has persisted to this day. Despite obtaining a favorable ruling from the Mexican courts dismissing the group's royalty claims, and despite repeated requests for the Mexican Government to enforce the law and remove the illegal blockade, the Government has continuously elected not to act. As a result, Silver Bull has been denied access to the site for more than five years, preventing the Company from conducting its lawful business activities in Mexico. This has led to the complete loss of Silver Bull's investment and the destruction of shareholder value at Sierra Mojada. The Mexican Government's actions and inactions directly drove investors away and effectively expropriated the Sierra Mojada Project.".
BACKGROUND TO THE CLAIM: The arbitration has been initiated under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States process, which falls under the auspices of the World Bank's ICSID, to which Mexico is a signatory.
Silver Bull officially notified Mexico on March 2, 2023 of its intention to initiate an arbitration owing to Mexico's breaches of NAFTA by unlawfully expropriating Silver Bull's investments without compensation, failing to provide Silver Bull and its investments with fair and equitable treatment or full protection and security, and not upholding NAFTA's national treatment standard.
Silver Bull held a meeting with Mexican government officials in Mexico City on May 30, 2023, in an attempt to explore amicable settlement options and avoid arbitration. However, the 90-day period for amicable settlement under NAFTA expired on June 2, 2023, without a resolution.
Despite repeated demands and requests for action by the Company, Mexico's governmental agencies have allowed the unlawful blockade to continue, thereby failing to protect Silver Bull's investments. Consequently, Silver Bull is seeking to recover an amount of US
THE SIERRA MOJADA DEPOSIT: Silver Bull's only asset is the Sierra Mojada deposit located in Coahuila, Mexico. Sierra Mojada is an open pittable oxide deposit with a NI 43-101 compliant Measured and Indicated "global" Mineral Resource of 70.4 million tonnes grading
For a full summary of the Sierra Mojada resource, please refer to Silver Bull's news release located at the following link:
On behalf of the Board of Directors
"Tim Barry"
Tim Barry, CPAusIMM
President and Chief Executive Officer and Director
INVESTOR RELATIONS:
1 604 687 5800 info@silverbullresources.com
Cautionary note regarding forward looking statements: This news release may contain certain information that is forward-looking and is subject to important risks and uncertainties (such statements include statements regarding the final approval of the Private Placement by the Exchange and other statements implying a future state which are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Any forward-looking statements in this document are intended to provide Silver Bull security holders and potential investors with information regarding Silver Bull, including management's assessment of Silver Bull's future plans and financial outlook. Any forward-looking statements reflect Silver Bull's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the Company's filings under Silver Bull's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE: Silver Bull Resources, Inc.
View the original press release on ACCESS Newswire
FAQ
How much is Silver Bull (SVBL) claiming in damages against Mexico in their 2025 arbitration case?
What caused Silver Bull's (SVBL) arbitration claim against Mexico in 2023?
When is Silver Bull's (SVBL) arbitration hearing against Mexico scheduled for 2025?
What resources does Silver Bull (SVBL) have at Sierra Mojada project in Mexico?
How is Silver Bull (SVBL) funding its arbitration case against Mexico?
