Almaden requests consultations with Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
14 December 2023 - 11:00PM
Almaden Minerals Ltd. (“Almaden” or “the Company”; TSX:
AMM; NYSE American: AAU) announces that it has delivered
to the United Mexican States (“Mexico”) a Request for Consultations
in accordance with the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (“CPTPP”) relating to an investment
dispute with Mexico.
Almaden sent the Request for Consultations to
Mexico’s General Directorate of Legal Consultancy for International
Trade (Dirección General de Consultoría Jurídica de Comercio
Internacional). The investment dispute arises out of certain acts
and omissions of Mexico in breach of the CPTPP relating to the
Company’s investment in the Ixtaca Gold-Silver Project (the
“Project”).
The Company has suffered substantial harm
arising out of Mexico’s conduct in breach of its investment
protection obligations under the CPTPP, including (without
limitation):
- the Mexican Ministry of Economy’s
(“Economia”) declaration that the Project’s mineral titles were
void;
- Economia’s reassessment of the
original applications for the mineral titles holding them to be
deficient and unfeasible, contradicting the position previously
adopted by it, and violating the Company and its subsidiary’s right
to amend or supplement the mineral title applications; and
- the Mexican Secretariat of
Environment and Natural Resources’ (Secretaría del Medio Ambiente y
Recursos Naturales, “SEMARNAT”) delay in issuance and ultimate
refusal to issue the Project’s environmental permit (Manifiesto de
Impacto Ambiental).
The Request for Consultations enables the
Company to initiate arbitration should an amicable resolution of
the dispute with the Mexican government not be reached. The filing
of the Request for Consultations initiates a six-month consultation
period between the parties, during which they are to attempt to
amicably settle the dispute. If no settlement is reached in that
six-month period, the Company may then initiate international
arbitration proceedings against Mexico in accordance with the CPTPP
after serving a notice of intent to submit claims to
arbitration.
The Company confirms that it is taking all
necessary actions to preserve its rights and protect its
investments in Mexico. The Company’s desire is for all parties to
reach a mutually acceptable outcome swiftly and amicably. If such
an outcome is not achieved within the next six months, the Company
expects it will have no alternative but to pursue its claims before
an arbitral tribunal and seek full compensation for damages the
Company has suffered as a result of Mexico’s acts and omissions.
This Request for Consultations has been submitted by Almaden
together with Almadex Minerals Ltd., on behalf of themselves and
their Mexican subsidiaries.
The Company has retained international
arbitration counsel at Boies Schiller Flexner LLP to advise and
will consider any other actions necessary to ensure its rights are
preserved.
On Behalf of the Board of Directors,
“J. Duane
Poliquin” J. Duane
PoliquinChairAlmaden Minerals Ltd.
Safe Harbor Statement
Certain of the statements and information in
this news release constitute “forward-looking statements” within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” within the
meaning of applicable Canadian provincial securities laws. All
statements, other than statements of historical fact, are
forward-looking statements or information. Forward-looking
statements or information in this news release relate to, among
other things, the timing and nature of any future consultation,
negotiations or settlement between the Company and Mexico, whether
the Company pursues claims before an arbitral tribunal and the
timing, result and damages of such claims before an arbitral
tribunal.
These forward-looking statements and information
reflect the Company’s current views with respect to future events
and are necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant legal, regulatory, business, operational and economic
uncertainties and contingencies, and such uncertainty generally
increases with longer-term forecasts and outlook. These assumptions
include: stability and predictability in Mexico’s consultation
process under the CPTPP; stability and predictability in the
application of the CPTPP and arbitral decisions thereon; and
continued respect for the rule of law in Mexico. The foregoing list
of assumptions is not exhaustive.
The Company cautions the reader that
forward-looking statements and information involve known and
unknown risks, uncertainties and other factors that may cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements or
information contained in this news release. Such risks and other
factors include, among others, risks related to: Mexico’s
consultation process under the CPTPP; the application of the CPTPP
and arbitral decisions thereon; continued respect for the rule of
law in Mexico; political risk in Mexico; crime and violence in
Mexico; corruption in Mexico; environmental risks, including
environmental matters under Mexican laws and regulations; impact of
environmental impact assessment requirements on the Company’s
planned exploration and development activities on the Project;
certainty of mineral title and the outcome of consultation,
litigation and arbitration; community relations; governmental
regulations and the ability to obtain necessary licences and
permits; risks related to mineral properties being subject to prior
unregistered agreements, transfers or claims and other defects in
title; changes in mining, environmental or agrarian laws and
regulations and changes in the application of standards pursuant to
existing laws and regulations which may increase costs of doing
business and restrict operations; as well as those factors
discussed the section entitled "Risk Factors" in Almaden's Annual
Information Form and Almaden's latest Form 20-F on file with the
United States Securities and Exchange Commission in Washington,
D.C. Although the Company has attempted to identify important
factors that could affect the Company and may cause actual actions,
events or results to differ materially from those described in
forward-looking statements or information, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
our forward-looking statements or information will prove to be
accurate. Accordingly, readers should not place undue reliance on
forward-looking statements or information. Except as required by
law, the Company does not assume any obligation to release publicly
any revisions to on forward-looking statements or information
contained in this news release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
Contact Information:
Almaden Minerals Ltd.Tel. 604.689.7644Email:
info@almadenminerals.comhttp://www.almadenminerals.com/
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