Fortuna provides an update on the appeal to the denial of the
extension of the environmental impact authorization at its San Jose
Mine, Mexico
Fortuna Silver Mines Inc. (NYSE: FSM)
(TSX: FVI) is providing an update on the status of the
appeal to the denial order (the “Denial Order”) received on
November 10, 2021 from the Secretaría de Medio Ambiente y Recursos
Naturales (“SEMARNAT”) with respect to the application to extend
the environmental impact authorization (“EIA”) at the San Jose
Mine, located in Oaxaca, Mexico.
Fortuna’s Mexican subsidiary, Companía Minera
Cuzcatlán (“Minera Cuzcatlan”) is working with its legal advisors
to file an appeal to the Denial Order prior to the end of November
2021. The appeal will be brought by Minera Cuzcatlan in the Mexican
courts.
The grounds for the appeal are that Minera
Cuzcatlan is in full compliance with all material environmental
laws, and therefore Minera Cuzcatlan has the right to an extension
of the EIA under applicable law. The timing for a decision by the
Administrative Court is uncertain, and Fortuna has been advised
that such decisions may often take up to a year to be
delivered.
The San Jose mine is currently operating under
the protection of the Mexican courts which allows the continued
operation of the San Jose mine beyond the expiry date of the EIA
(refer to Fortuna news release dated October 25, 2021). Under the
terms of the Company’s credit facility (refer to Fortuna news
release dated November 11, 2021), the Company is required to obtain
a permanent injunction or equivalent protection, in form and
substance acceptable to the lenders acting reasonably, by November
20, 2021 to allow the Company to continue to operate the San Jose
mine from October 23, 2021. The lenders under the credit facility
have agreed to waive that requirement until February 18, 2022,
provided such permanent injunction or equivalent protection has not
been lifted or stayed prior thereto.
The Company believes that it is fundamentally in
compliance with all material aspects of the EIA and is entitled to
an extension. The Company is continuing to work with authorities to
resolve this matter. Minera Cuzcatlan is continuing to pursue all
legal protection available to it in order to continue to operate
pending the appeal of the Denial Order.
About Fortuna Silver Mines
Inc.
Fortuna Silver Mines Inc. is a Canadian precious
metals mining company with four operating mines in Argentina,
Burkina Faso, Mexico and Peru, and an advanced development project
in Côte d’Ivoire. Sustainability is integral to all our operations
and relationships. We produce gold and silver and generate shared
value over the long-term for our stakeholders through efficient
production, environmental protection, and social responsibility.
For more information, please visit our website.
ON BEHALF OF THE BOARD
Jorge A. Ganoza President, CEO,
and DirectorFortuna Silver Mines Inc.
Investor Relations: Carlos Baca
| info@fortunasilver.com
Forward-looking Statements
This news release contains forward-looking
statements which constitute “forward-looking information” within
the meaning of applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995 (collectively, “Forward-looking Statements”). All
statements included herein, other than statements of historical
fact, are Forward-looking Statements and are subject to a variety
of known and unknown risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the Forward-looking Statements. The Forward-looking Statements
in this news release may include, without limitation, statements
about the legal proceedings to be initiated by Compania Minera
Cuzcatlan (“Minera Cuzcatlan”) to appeal the denial of its
application to extend the environmental impact authorization at the
San Jose mine; the current legal protection in place which permits
the continued operation of the San Jose mine beyond the expiry date
of the EIA until the EIA is granted or until successful resolution
of the appeal; that Minera Cuzcatlan will have legal protection in
place to continue to operate beyond February 18, 2022; the
Company’s business strategy, plans and outlook; the merit of the
Company’s mines and mineral properties; the future financial or
operating performance of the Company; expenditures; approvals and
other matters. Often, but not always, these Forward-looking
Statements can be identified by the use of words such as
“estimated”, “potential”, “open”, “future”, “assumed”, “projected”,
“used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”,
“will”, “anticipated”, “estimated”, “containing”, “remaining”, “to
be”, or statements that events, “could” or “should” occur or be
achieved and similar expressions, including negative
variations.
Forward-looking Statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any results, performance or achievements
expressed or implied by the Forward-looking Statements. Such
uncertainties and factors include among others, the ability of CMC
to obtain an extension from SEMARNAT to the EIA; the ability of the
Minera Cuzcatlan to successfully appeal the denial of the extension
to the San Jose EIA; that the current court protection to allow the
San Jose mine to operate is not stayed or lifted; to; changes in
general economic conditions and financial markets; the impact of
the COVID-19 pandemic on the Company’s mining operations and
construction activities; the duration and impacts of COVID-19 on
the Company’s production, workforce, business, operations and
financial condition, and the risks relating to a global pandemic,
which unless contained could cause a slowdown in global economic
growth; uncertainties related to the impacts of COVID-19 which may
include: changing market conditions, changing restrictions on the
mining industry in the countries in which the Company operates, the
ability to operate as a result of government imposed restrictions,
including restrictions on travel, the transportation of
concentrates and doré, access to refineries, the impact of
additional waves of the pandemic or increases of incidents of
COVID-19 in the countries in which we operate; the duration of any
suspension of operations at the Company’s mines as a result of
COVID-19 which may affect production and the Company’s business
operations and financial condition; the easing of travel
restrictions imposed in Argentina which were put in place to curb
the spread of COVID-19; changes in prices for gold, silver and
other metals; changes in the prices of key supplies; technological
and operational hazards in Fortuna’s mining and mine development
activities; risks inherent in mineral exploration; the ability of
the current exploration programs to identify and or expand mineral
resources, operational risks in exploration and development; delays
or changes in plans with respect to exploration or development
projects; uncertainties inherent in the estimation of mineral
reserves, mineral resources, and metal recoveries; changes to
current estimates of mineral reserves and resources; changes to
production and cost estimates; governmental and other approvals;
changes in government, political unrest or instability in countries
where Fortuna is active; fluctuations in currencies and exchange
rates; the imposition of capital control in countries in which the
Company operates; labor relations issues; as well as those factors
discussed under “Risk Factors” in the Company's Annual Information
Form. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in Forward-looking
Statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or
intended.
Forward-looking Statements contained herein are
based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to the accuracy of the
Company’s current mineral resource and reserve estimates; that the
Company’s activities will be in accordance with the Company’s
public statements and stated goals; that there will be no material
adverse change affecting the Company or its properties; that the
Company will be successful in obtaining an extension to the San
Jose EIA; that the Company will be successful in its appeal of the
denial of the extension to the San Jose EIA; that the
reconciliation of mineral reserves at the Company’s mines remains
consistent with the mineral reserve model; changes to production
estimates (which assume accuracy of projected ore grade, mining
rates, recovery timing, and recovery rate estimates and may be
impacted by unscheduled maintenance, labour and contractor
availability and other operating or technical difficulties); the
duration and impacts of COVID-19 on the Company’s production,
workforce, business, operations and financial condition, and the
risks relating to a global pandemic, which unless contained could
cause a slowdown in global economic growth; government mandates in
Peru, Mexico, Argentina, Burkina Faso and Côte d’Ivoire with
respect to mining operations generally or auxiliary businesses or
services required for the Company’s operations; government and the
Company’s attempts to reduce the spread of COVID-19 which may
affect may aspects of the Company’s operations, including
transportation of personnel to and from site, contractor and
supplier availability and the ability to sell or deliver
concentrate and doré; the expected trends in mineral prices and
currency exchange rates; that the Company’s activities will be in
accordance with the Company’s public statements and stated goals;
that there will be no material adverse change affecting the Company
or its properties; that all required approvals and permits will be
obtained for the Company’s business and operations; that there will
be no significant disruptions affecting operations and such other
assumptions as set out herein. Forward-looking Statements are made
as of the date hereof and the Company disclaims any obligation to
update any Forward-looking Statements, whether as a result of new
information, future events or results or otherwise, except as
required by law. There can be no assurance that these
Forward-looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, investors should not
place undue reliance on Forward-looking Statements.
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