First Majestic Announce illegal Blockade at La Encantada
May 24 2017 - 10:57AM
FIRST MAJESTIC SILVER CORP. (NYSE:AG) (TSX:FR)
(the "Company" or “First Majestic”) announces that a rogue group of
union workers have halted activities and blocked the accesses at
the La Encantada Silver Mine in the state of Coahuila, Mexico. The
illegal blockade arose after some of the unionized individuals did
not agree with the bonus that the company and the National Union of
Miners, Metallurgists, Steelworkers and Similar Workers of Mexico
(National Union), agreed to offer the miners in lieu of profit
sharing.
Despite an agreement with the National Union,
this rogue group of workers unilaterally decided to form a
blockade, which has disrupted operations for all of the mine’s
employees. It is currently not known how long the blockade will
continue, however, First Majestic is working with the leadership of
the National Union in order to resume operations and have the
workers return to work.
“It is very unfortunate that this group of
individuals have chosen to react in this manner instead of through
dialogue and the proper channels through its union leadership,”
said Dustin VanDoorselaere, COO. “We have been working very
diligently with the leadership of the National Union to provide a
fair solution for all union employees.”
Keith Neumeyer, President & CEO commented,
“This is a minor setback in our plans for renewed investment at La
Encantada focusing on underground development and brownfields
exploration, which will over time result in increased throughput
rates and higher head grades. As part of our 2017 capital
expenditure program, La Encantada is receiving the highest level of
investment of our six mines, including improvements to the camp
facilities and the investment in the new roasting
project.”
The company has always had a positive
relationship with the National Union and continues to work to find
a resolution to the conflict. Unfortunately, the conditions in
Mexico are difficult with low metal prices and higher taxes and
fuel costs. Unfortunately, this type of work disruption is
increasingly occurring in many other mining operations throughout
the country of Mexico.
ABOUT FIRST MAJESTICFirst
Majestic is a mining company focused on silver production in Mexico
and is aggressively pursuing the development of its existing
mineral property assets. The Company presently owns and operates
six producing silver mines; the La Parrilla Silver Mine, the San
Martin Silver Mine, the La Encantada Silver Mine, the La Guitarra
Silver Mine, Del Toro Silver Mine and the Santa Elena Silver/Gold
Mine. Production from these six mines is projected to be between
11.1 to 12.4 million ounces of pure silver or 16.6 to 18.5 million
ounces of silver equivalents in 2017.
FOR FURTHER INFORMATION contact
info@firstmajestic.com, visit our website at
www.firstmajestic.com or call our toll free number
1.866.529.2807.
FIRST MAJESTIC SILVER CORP.“signed”Keith
Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING
INFORMATIONThis news release includes certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. When used in this news release, the words
“anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”,
“forecast”, “may”, “schedule” and similar words or expressions,
identify forward-looking statements or information. These
forward-looking statements or information relate to, among other
things: the price of silver and other metals; the accuracy of
mineral reserve and resource estimates and estimates of future
production and costs of production at our properties; estimated
production rates for silver and other payable metals produced by
us, the estimated cost of development of our development projects;
the effects of laws, regulations and government policies on our
operations, including, without limitation, the laws in Mexico which
currently have significant restrictions related to mining;
obtaining or maintaining necessary permits, licences and approvals
from government authorities; and continued access to necessary
infrastructure, including, without limitation, access to power,
land, water and roads to carry on activities as planned.
These statements reflect the Company’s current
views with respect to future events and are necessarily based upon
a number of assumptions and estimates that, while considered
reasonable by the Company, are inherently subject to significant
business, economic, competitive, political and social uncertainties
and contingencies. Many factors, both known and unknown, could
cause actual results, performance or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward-looking statements or
information and the Company has made assumptions and estimates
based on or related to many of these factors. Such factors include,
without limitation: fluctuations in the spot and forward price of
silver, gold, base metals or certain other commodities (such as
natural gas, fuel oil and electricity); fluctuations in the
currency markets (such as the Canadian dollar and Mexican peso
versus the U.S. dollar); changes in national and local government,
legislation, taxation, controls, regulations and political or
economic developments in Canada, Mexico; operating or technical
difficulties in connection with mining or development activities;
risks and hazards associated with the business of mineral
exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins and flooding); risks relating to the credit
worthiness or financial condition of suppliers, refiners and other
parties with whom the Company does business; inability to obtain
adequate insurance to cover risks and hazards; and the presence of
laws and regulations that may impose restrictions on mining,
including those currently enacted in Mexico; employee relations;
relationships with and claims by local communities and indigenous
populations; availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses, permits and approvals from government
authorities; diminishing quantities or grades of mineral reserves
as properties are mined; the Company’s title to properties; and the
factors identified under the caption “Risk Factors” in the
Company’s Annual Information Form, under the caption “Risks
Relating to First Majestic's Business”.
Investors are cautioned against attributing
undue certainty to forward-looking statements or information.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially, there may be
other factors that cause results not to be anticipated, estimated
or intended. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements or
information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements or
information, other than as required by applicable law.
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