Fortuna Provides Update on Appeal to Deny Extension of Environmental Impact Authorization for San Jose Mine, Mexico
VANCOUVER, British Columbia, November 19, 2021 (GLOBE NEWSWIRE) – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) provides an update on the status of the Appeal to the Refusal Order (the âRefusal Orderâ) received on November 10, 2021 from the SecretarÃa de Medio Ambiente y Recursos Naturales (âSEMARNATâ) in relation to the application for the extension of Environmental Protection Impact Permission (“EIA”) at the San Jose mine, located in Oaxaca, Mexico.
Fortuna’s Mexican subsidiary, CompanÃa Minera CuzcatlÃ¡n (“Minera Cuzcatlan”) is working with its legal advisers to file an appeal against the refusal order by the end of November 2021. The appeal will be brought by Minera Cuzcatlan in Mexican courts.
The grounds for the appeal are that Minera Cuzcatlan is in full compliance with all important environmental laws, and therefore Minera Cuzcatlan is entitled to an extension of the EIA under applicable law. The timing of an administrative tribunal decision is uncertain and Fortuna has been told that such decisions can often take up to a year to be rendered.
The San Jose mine is currently operating under Mexican court protection, allowing the San Jose mine to continue to operate beyond the EIA expiration date (see press release from Fortuna of October 25, 2021). Under the terms of the Company’s credit facility (see Fortuna press release dated November 11, 2021), the Company is required to obtain a permanent injunction or equivalent protection, in a form and substance acceptable to lenders. acting reasonably, by November 20, 2021. to allow the Company to continue operating the San Jose mine from October 23, 2021. The lenders under the credit facility have agreed to waive this requirement until until February 18, 2022, provided that such permanent injunction or equivalent protection has not been lifted or suspended prior to that.
The Company believes that it is in fundamental compliance with all material aspects of the EIA and is entitled to an extension. The Company continues to work with the authorities to resolve this issue. Minera Cuzcatlan continues to exercise all legal protections at its disposal in order to continue to operate pending 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 CÃ´te d’Ivoire. Sustainability is an integral part of all of our operations and relationships. We produce gold and silver and generate long-term shared value 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 Director
Fortuna Silver Mines Inc.
Carlos baca | [email protected]
This press release contains forward-looking statements that constitute âforward-looking informationâ within the meaning of applicable Canadian securities legislation and âforward-looking statementsâ within the meaning of the âsafe harborâ provisions of the Private Securities Litigation Reform Act of 1995. . (collectively, “forward-looking statements”). All statements included in this document, other than statements of historical fact, are forward-looking statements and are subject to a variety of known and unknown risks and uncertainties that could cause actual events or results to differ materially. those reflected in forward-looking statements. Forward-looking statements contained in this press release may include, but are not limited to, statements regarding legal proceedings to be initiated by Compania Minera Cuzcatlan (âMinera Cuzcatlanâ) to appeal the denial of its request for extension of service. ‘environmental impact authorization in San Jose Mien; the current legal protection in place that allows the San Jose mine to continue to operate beyond the EIA expiration date until the EIA is granted or until successful resolution of the call; that Minera Cuzcatlan will have legal protection to continue operating beyond February 18, 2022; the business strategy, plans and outlook of the Company; the merit of the Company’s mines and mineral properties; the future financial or operational performance of the Company; expenses; 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 “,” expected “,” reflecting “,” will be “,” expected “,” 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 that may cause the Company’s actual results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by the statements. prospective. These uncertainties and factors include, among others, the ability of the CMC to achieve an extension of SEMARNAT to EIA; Minera Cuzcatlan’s ability to successfully appeal the denial of the San Jose EIA extension; that the current judicial protection to allow the operation of the San Jose mine is neither suspended nor 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 production, workforce, business, operations and financial condition of the Company, and the risks associated with a global pandemic, which, if not contained, could lead to a slowdown in global economic growth; uncertainties related to the impacts of COVID-19 which may include: changes in market conditions, changes in restrictions on the mining industry in the countries in which the Company operates, the ability to operate due to restrictions imposed by the government, including travel restrictions, the transport of concentrates and walleye, access to refineries, the impact of additional waves of the pandemic or the increase in COVID-19 incidents in countries in which we operate; the duration of any suspension of operations at the Company’s mines due to COVID-19 which may affect the production, business operations and financial condition of the Company; the easing of travel restrictions imposed in Argentina that have been put in place to curb the spread of COVID-19; changes in the prices of gold, silver and other metals; changes in the prices of key supplies; technological and operational risks in Fortuna’s mining and mining development activities; risks inherent in mineral exploration; the ability of current exploration programs to identify and / or expand mineral resources, operational risks in exploration and development; delays or changes in plans for exploration or development projects; uncertainties inherent in estimating mineral reserves, mineral resources and metal recoveries; changes to current estimates of mineral reserves and resources; changes in production and cost estimates; government and other approvals; changes of government, political unrest or instability in the countries where Fortuna is active; currency and exchange rate fluctuations; the imposition of capital controls in the countries in which the Company operates; labor relations issues; as well as the factors described under the heading âRisk Factorsâ of the Company’s Annual Information Form. Although the Company has attempted to identify material 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 or results differ from those anticipated, estimated or intended.
The forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including, but not limited to, the accuracy of current estimates of the Company’s mineral resources and reserves; that the activities of the Company will be in accordance with public statements and stated objectives of the Company; that there will be no material adverse change affecting the Company or its properties; that the Company will be successful in securing an extension of the San Jose EIA; that the Company will be successful in its appeal against the rejection of the extension of the San Jose EIA; that the reconciliation of mineral reserves at the Company’s mines continue to conform to the mineral reserves model; changes in production estimates (which assume the accuracy of projected ore grade, mining rates, recovery schedule and recovery rate estimates and may be affected by unscheduled maintenance, labor availability -workers and contractors and other operating or technical difficulties); the duration and impacts of COVID-19 on the production, workforce, business, operations and financial condition of the Company, and the risks associated with a global pandemic, which, if not contained, could lead to a slowdown in global economic growth; government mandates in Peru, Mexico, Argentina, Burkina Faso and CÃ´te d’Ivoire relating to mining operations in general or ancillary activities or services required for the operations of the Company; government and Company attempts to reduce the spread of COVID-19, which may affect aspects of Company operations, including transportation of personnel to and from site, availability of contractors and suppliers, and ability to sell or deliver concentrate and walleye; expected trends in mineral prices and exchange rates; that the activities of the Company will be in accordance with public statements and stated objectives of the Company; 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 activities and operations of the Company; that there will be no material disruption affecting the operations and other assumptions set forth herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. required. 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. Therefore, investors should not place undue reliance on forward-looking statements.