Almaden Files Memorial Documentation for US$1.06 billion Damages Claim Against Mexico
Almaden Minerals (TSX: AMM; OTCQB: AAUAF) has filed a memorial submission for its US$1.06 billion damages claim against Mexico under the CPTPP international arbitration proceedings. The claim stems from Mexico's actions that resulted in the complete loss of the company's Ixtaca precious metals project.
The dispute originated in 2015 when an ejido community declared itself Indigenous and filed a lawsuit challenging Mexico's mineral title system. Despite Almaden's attempts to relinquish 7,000 hectares including the ejido lands, the situation escalated under President Lopez-Obrador's administration. In 2022, Mexico's Supreme Court ordered the suspension of Almaden's mineral titles for Indigenous consultation, but in 2023, the mining authority (Economia) arbitrarily denied the company's mineral title applications retroactively, citing minor technical faults.
The claim is being financed by up to US$9.5 million in non-recourse litigation funding. Almaden, together with Almadex Minerals (which held a 2.0% NSR royalty), alleges that Mexico unlawfully expropriated their investments, failed to provide fair treatment, and discriminated against them.
Almaden Minerals (TSX: AMM; OTCQB: AAUAF) ha presentato una memoria per la sua richiesta di risarcimento danni di 1,06 miliardi di dollari USA contro il Messico nell'ambito delle procedure di arbitrato internazionale CPTPP. La richiesta deriva dalle azioni del Messico che hanno portato alla completa perdita del progetto di metalli preziosi Ixtaca dell'azienda.
La controversia è iniziata nel 2015 quando una comunità ejido si è dichiarata indigena e ha intentato una causa contestando il sistema di titoli minerari del Messico. Nonostante i tentativi di Almaden di rinunciare a 7.000 ettari, inclusi i terreni ejido, la situazione è degenerata sotto l'amministrazione del Presidente Lopez-Obrador. Nel 2022, la Corte Suprema del Messico ha ordinato la sospensione dei titoli minerari di Almaden per consultazione indigena, ma nel 2023, l'autorità mineraria (Economia) ha arbitrariamente negato retroattivamente le domande di titoli minerari dell'azienda, citando lievi difetti tecnici.
La richiesta è finanziata fino a 9,5 milioni di dollari USA tramite finanziamenti per contenziosi senza ricorso. Almaden, insieme a Almadex Minerals (che deteneva una royalty NSR del 2,0%), sostiene che il Messico ha espropriato illegalmente i loro investimenti, non ha fornito un trattamento equo e ha discriminato nei loro confronti.
Almaden Minerals (TSX: AMM; OTCQB: AAUAF) ha presentado una memoria para su reclamación de daños de 1.06 mil millones de dólares estadounidenses contra México en el marco de los procedimientos de arbitraje internacional CPTPP. La reclamación surge de las acciones de México que resultaron en la pérdida total del proyecto de metales preciosos Ixtaca de la empresa.
La disputa se originó en 2015 cuando una comunidad ejido se declaró indígena y presentó una demanda desafiando el sistema de títulos mineros de México. A pesar de los intentos de Almaden de renunciar a 7,000 hectáreas, incluidos los terrenos ejido, la situación se agravó bajo la administración del Presidente Lopez-Obrador. En 2022, la Corte Suprema de México ordenó la suspensión de los títulos mineros de Almaden para consulta indígena, pero en 2023, la autoridad minera (Economía) negó arbitrariamente las solicitudes de títulos mineros de la empresa de manera retroactiva, citando pequeños fallos técnicos.
La reclamación está siendo financiada hasta 9.5 millones de dólares estadounidenses a través de financiamiento para litigios sin recurso. Almaden, junto con Almadex Minerals (que tenía una regalía NSR del 2.0%), alega que México expropió ilegalmente sus inversiones, no proporcionó un trato justo y los discriminó.
Almaden Minerals (TSX: AMM; OTCQB: AAUAF)는 CPTPP 국제 중재 절차에 따라 멕시코에 대해 10억 6천만 달러의 손해배상 청구를 위한 메모리얼 제출을 하였습니다. 이 청구는 멕시코의 조치로 인해 회사의 이스타카 귀금속 프로젝트가 완전히 손실된 것에서 비롯됩니다.
이 분쟁은 2015년에 ejido 커뮤니티가 자신을 원주민으로 선언하고 멕시코의 광물 제목 시스템에 이의를 제기하는 소송을 제기하면서 시작되었습니다. Almaden이 ejido 토지를 포함하여 7,000 헥타르를 포기하려고 시도했음에도 불구하고, 상황은 로페스-오브라도르 대통령의 행정부 하에서 악화되었습니다. 2022년, 멕시코 대법원은 원주민 상담을 위해 Almaden의 광물 제목을 정지하라는 명령을 내렸지만, 2023년에는 광업 당국(경제부)이 경미한 기술적 결함을 이유로 회사의 광물 제목 신청을 소급적으로 자의적으로 거부했습니다.
이 청구는 최대 950만 달러의 무상환 소송 자금으로 재정 지원을 받고 있습니다. Almaden은 Almadex Minerals(2.0% NSR 로열티를 보유)와 함께 멕시코가 그들의 투자를 불법적으로 수용하고, 공정한 대우를 제공하지 않으며, 차별을 했다고 주장하고 있습니다.
Almaden Minerals (TSX: AMM; OTCQB: AAUAF) a déposé une soumission mémorielle pour sa demande de dommages-intérêts de 1,06 milliard de dollars US contre le Mexique dans le cadre des procédures d'arbitrage international CPTPP. La demande découle des actions du Mexique qui ont entraîné la perte totale du projet de métaux précieux Ixtaca de l'entreprise.
Le litige a commencé en 2015 lorsqu'une communauté ejido s'est déclarée indigène et a intenté un procès contestation le système de titres miniers du Mexique. Malgré les tentatives d'Almaden de renoncer à 7 000 hectares, y compris les terres ejido, la situation s'est aggravée sous l'administration du Président Lopez-Obrador. En 2022, la Cour suprême du Mexique a ordonné la suspension des titres miniers d'Almaden pour consultation indigène, mais en 2023, l'autorité minière (Économie) a arbitrairement refusé rétroactivement les demandes de titres miniers de l'entreprise, en invoquant de légers défauts techniques.
La demande est financée jusqu'à 9,5 millions de dollars US par le biais de financements pour litiges sans recours. Almaden, avec Almadex Minerals (qui détenait une redevance NSR de 2,0 %), allègue que le Mexique a exproprié illégalement leurs investissements, n'a pas fourni un traitement équitable et a fait preuve de discrimination à leur égard.
Almaden Minerals (TSX: AMM; OTCQB: AAUAF) hat eine Gedenkvorlage für seine Schadenersatzforderung in Höhe von 1,06 Milliarden US-Dollar gegen Mexiko im Rahmen der CPTPP internationalen Schiedsverfahren eingereicht. Die Forderung resultiert aus den Maßnahmen Mexikos, die zum vollständigen Verlust des Ixtaca Edelmetallprojekts des Unternehmens führten.
Der Streit entstand 2015, als eine Ejido-Gemeinschaft sich als indigen erklärte und eine Klage gegen das mexikanische Mineralrechtssystem einreichte. Trotz der Versuche von Almaden, 7.000 Hektar, einschließlich der Ejido-Länder, aufzugeben, eskalierte die Situation unter der Verwaltung von Präsident Lopez-Obrador. Im Jahr 2022 ordnete der Oberste Gerichtshof Mexikos die Aussetzung der Mineralrechte von Almaden zur indigenen Konsultation an, doch 2023 wies die Bergbaubehörde (Wirtschaft) die Anträge des Unternehmens auf Mineralrechte rückwirkend willkürlich zurück und berief sich auf geringfügige technische Mängel.
Die Forderung wird mit bis zu 9,5 Millionen US-Dollar an nicht rückzahlbaren Rechtsstreitfinanzierungen finanziert. Almaden, zusammen mit Almadex Minerals (das eine NSR-Royalty von 2,0 % hielt), behauptet, dass Mexiko ihre Investitionen rechtswidrig enteignet hat, keinen fairen Umgang geboten hat und sie diskriminiert hat.
- Secured US$9.5 million in non-recourse litigation funding for the claim
- Strong legal representation from Boies, Schiller, Flexner, LLP, and RíosFerrer + Gutiérrez
- Damage claim value will be updated to reflect future movements in precious metal prices and other factors
- Complete loss of investment in the Ixtaca precious metals project
- Permanent cancellation of mineral rights in Mexico
- Legal proceedings could be lengthy and outcome uncertain
- Loss of 2.0% NSR royalty held by Almadex
VANCOUVER, British Columbia, March 21, 2025 (GLOBE NEWSWIRE) -- Almaden Minerals Ltd. (“Almaden” or “the Company”; TSX: AMM; OTCQB: AAUAF) announces that it has filed its memorial submission (“Memorial”) relating to its international arbitration proceedings (the “Claim”) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) with the United Mexican States (“Mexico”).
The Claim is being prosecuted pursuant to the established and enforceable legal framework of the International Centre for Settlement of Investment Disputes and is financed by up to US
As further explained in the Company’s June 27, 2024 press release, Almaden is pursuing this Claim together with Almadex Minerals Ltd. (“Almadex”), on behalf of themselves and their Mexican subsidiaries (the “Claimants”). Prior to the illegal acts of Mexico which resulted in the complete loss of the investment, Almaden held
The Memorial outlines how Mexico breached its obligations under the CPTPP through actions which blocked the development of the Ixtaca project and ultimately retroactively and arbitrarily terminated the Company’s mineral concessions. Specifically, the Memorial demonstrates how Mexico (i) unlawfully expropriated the Claimants’ protected investments without any compensation; (ii) failed to accord the Claimants’ protected investments fair and equitable treatment; and (iii) unlawfully discriminated against the Claimants and their protected investments.
Based on a valuation by an independent quantum expert, the Claimants are seeking damages of US
The Claimants’ legal counsel for this arbitration are Boies, Schiller, Flexner, LLP, and RíosFerrer + Gutiérrez, S.C.
Background to the Claim
In March, 2015, an ejido community (“Ejido”), declared itself Indigenous and in April, 2015, filed a lawsuit (“Lawsuit”) against Mexico (the President, Congress, Ministry of Economy, Directorate of Mines, Mining Registry Office), claiming that Mexico’s mineral title system was unconstitutional because Indigenous consultation was not required before the granting of mineral title. Under Mexican law, an ejido refers to a form of communal land tenure where a group of individuals, known as ejidatarios, collectively own and manage agricultural land.
The Ejido in question is a small, remote mountain village of approximately 150 residents, located at an altitude of 2,569 meters, a higher elevation than the Project. It is situated entirely outside the Project’s “area of influence” as defined in the Company’s environmental permit application of February, 2019, approximately 45 minutes to an hour by car from the Project site. The Ejido lands cover an area of approximately 330 hectares, in the southeastern portion of the mineral concessions which were owned by the Company and which underpinned the Project. The Lawsuit was supported by internationally funded non-governmental organizations.
Upon learning of the Lawsuit, Almaden immediately sought to relinquish approximately 7,000 hectares of its mineral title area including the portion overlapping with the Ejido lands, believing that this would address the Ejido’s concerns. The reduced title area was confirmed by the Mexican mining authorities in 2017. However, the Ejido appealed this reduction, and in late 2020 the Mexican courts confirmed that the Company was obligated to continue in its possession of the larger title area.
In 2018, President Lopez-Obrador (“AMLO”) came into power in Mexico. The AMLO regime is widely recognized as having been hostile to the mining industry, in particular foreign mining companies that owned or sought to develop mining projects in Mexico.
In 2022, Mexico’s Supreme Court (“SCJN”) ruled on the Lawsuit. In effect, the SCJN ruling concluded that the Mexican mining law was not unconstitutional, but that the Mexican mining authority (“Economia”) had improperly issued the Claimants’ mineral titles as it had not incorporated Mexico’s Indigenous consultation obligations into the mineral title issuance procedures. The SCJN required that the Company’s two mineral titles be suspended, in order that the Company’s mineral title applications, originally made in 2002 and 2008 and approved in 2003 and 2009, could be reissued by Economia after it complied with its Indigenous consultation obligations.
The rights endowed by the Company’s mineral titles were suspended in June, 2022, and the Company began working cooperatively with Economia to facilitate what it thought would be the first ever Indigenous consultation in Mexico in respect of the granting of mineral titles. In October, 2022 however, the head of Economia was replaced and the Company’s access to Economia ceased.
In February, 2023 Economia filed a notice with the courts charged with implementing the SCJN decision, seeking to deny the two mineral title applications retroactively. The notice claimed that the applications contained alleged de minimis technical faults, despite Economia’s acceptance of the mineral title applications and grant of the mineral titles in 2003 and 2009. By alleging such de minimis technical faults in the mineral title applications, Economia breached Mexican domestic law and international law to deny arbitrarily and pre-emptively the grant of the mineral titles and thereby avoid the Indigenous consultation ordered by the SCJN. Such consultation would have been welcomed by both the Company and community members living in the area of influence of the Project.
Despite the legal appeals of the Company and surrounding community members that Indigenous consultation should proceed, the Mexican courts endorsed Economia’s position. Therefore, the mineral rights underpinning the Project were definitively cancelled and reverted to the Government of Mexico, and Indigenous consultation never occurred.
The Claimants filed their Request for Arbitration in June, 2024, and the three-person arbitration panel has now been formed. Almaden looks forward to updating shareholders on the arbitration calendar in the coming months.
About the Ixtaca Project
The Company discovered the Project in 2010, and ultimately completed a feasibility study, filing the technical report in 2019. Technical and financial highlights of the Project feasibility study included the following:
- Average annual production of 108,500 ounces gold and 7.06 million ounces silver (203,000 gold equivalent ounces, or 15.2 million silver equivalent ounces) over first 6 years;
- After-tax internal rate of return of
42% and after-tax payback period of 1.9 years at base case metal prices (see below); - Conventional open pit mining with a proven and probable mineral reserve of 1.39 million ounces of gold and 85.2 million ounces of silver;
- All-in Sustaining Costs (“AISC”), including operating costs, sustaining capital, expansion capital, private and public royalties, refining and transport of
$850 per gold equivalent ounce, or$11.30 per silver equivalent ounce; - Dry stack filtered tailings facility, and co disposal with waste rock with no tailings dam;
- A fresh water storage dam for mine and community use, enhancing community access to a fresh water reservoir beyond eventual closure of the mine;
- Testing showed the host limestone “waste” rock was neutralising and that the Project had low potential for metal leaching;
- Had the Project proceeded, economic contributions were estimated to include approximately 600 direct jobs during the peak of construction and 420 jobs throughout the 11-year mine life. Assuming base case metal prices (see below), the project could have generated approximately US
$130 million in Federal taxes, US$50 million in State taxes and US$30 million in Municipal taxes and provide updated infrastructure to a marginalised region.
(All values shown are in $US; Base case uses$127 5/oz gold and$17 /oz silver prices. Gold and silver equivalency calculations assumed 75:1 ratio. Proven mineral reserves were comprised of 31.6 million tonnes grading 0.70 g/t gold and 43.5 g/t silver. Probable mineral reserves were comprised of 41.4 million tonnes grading 0.51 g/t gold and 30.7 g/t silver. The cut-off grade used for ore/waste determination was NSR>=$14 /t. Associated metallurgical recoveries (gold and silver, respectively) were estimated as90% and90% for limestone,50% and90% for volcanic,50% and90% for black shale).
On behalf of the Board of Directors,
“J. Duane Poliquin”
J. Duane Poliquin
Chair
Almaden 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 total potential cost of the legal claims and the sufficiency of the money available under the litigation funding agreement to cover these costs, and the timing, result and damages arising from the Company’s memorial filing.
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 response to the arbitration process under the CPTPP; stability and predictability in the application of the CPTPP and arbitral decisions thereon; the ability to continue to finance the arbitration process, 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: 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; uncertainty as to the outcome of arbitration or the funding available to the Company to pursue it; 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. 604.689.7644
Email: info@almadenminerals.com
http://www.almadenminerals.com/
FAQ
What is the total amount of damages Almaden Minerals (AAUAF) is seeking from Mexico?
Why did Mexico cancel Almaden's (AAUAF) mineral rights for the Ixtaca project?
How is Almaden Minerals (AAUAF) financing its arbitration claim against Mexico?
What specific CPTPP violations is Almaden (AAUAF) claiming against Mexico?
When did the dispute between Almaden Minerals (AAUAF) and Mexico begin?
