Silver Elephant Provides Update on Mining Production Contract with Comibol
Silver Elephant Mining Corp. (SILEF) is facing challenges with its Mining Production Contract (MPC) in Bolivia after Comibol, the state mining company, issued a Notice of Cancelation in December 2024, alleging illegal mining activities. The company strongly denies these allegations, stating there is no physical evidence and maintaining that all permits were legally valid.
The situation is complicated by Andean Precious Metals Corp., a former customer, entering into a purchase agreement with Comibol for oxide materials from areas within Silver Elephant's MPC territory. This development follows a series of business interactions between the companies, including a terminated Master Services Agreement that resulted in a disputed $1,000,000 payment.
Silver Elephant has filed legal actions, including a Notice of Arbitration for payment and a Notice of Dispute regarding contractual interference. The company is actively pursuing administrative and judicial measures to reinstate the MPC for its 2,803-hectare Pulacayo-Paca Project.
Silver Elephant Mining Corp. (SILEF) sta affrontando delle sfide con il suo Contratto di Produzione Mineraria (MPC) in Bolivia dopo che Comibol, la compagnia mineraria statale, ha emesso un Avviso di Cancellazione nel dicembre 2024, sostenendo attività minerarie illegali. L'azienda nega fermamente queste accuse, affermando che non ci sono prove fisiche e mantenendo che tutti i permessi erano legalmente validi.
La situazione è complicata da Andean Precious Metals Corp., un ex cliente, che ha stipulato un accordo di acquisto con Comibol per materiali ossidati provenienti da aree all'interno del territorio MPC di Silver Elephant. Questo sviluppo segue una serie di interazioni commerciali tra le aziende, inclusa una Master Services Agreement terminata che ha portato a un pagamento controverso di $1.000.000.
Silver Elephant ha avviato azioni legali, inclusi un Avviso di Arbitrato per il pagamento e un Avviso di Controversia riguardo all'interferenza contrattuale. L'azienda sta attivamente perseguendo misure amministrative e giudiziarie per ripristinare il MPC per il suo Progetto Pulacayo-Paca di 2.803 ettari.
Silver Elephant Mining Corp. (SILEF) enfrenta desafíos con su Contrato de Producción Minera (MPC) en Bolivia después de que Comibol, la empresa minera estatal, emitiera un Aviso de Cancelación en diciembre de 2024, alegando actividades mineras ilegales. La empresa niega rotundamente estas acusaciones, afirmando que no hay evidencia física y manteniendo que todos los permisos eran legalmente válidos.
La situación se complica por Andean Precious Metals Corp., un antiguo cliente, que ha entrado en un acuerdo de compra con Comibol para materiales óxidos de áreas dentro del territorio del MPC de Silver Elephant. Este desarrollo sigue a una serie de interacciones comerciales entre las empresas, incluida una Master Services Agreement que fue terminada y resultó en un pago disputado de $1,000,000.
Silver Elephant ha presentado acciones legales, incluyendo un Aviso de Arbitraje por el pago y un Aviso de Controversia respecto a la interferencia contractual. La empresa está persiguiendo activamente medidas administrativas y judiciales para reinstaurar el MPC para su Proyecto Pulacayo-Paca de 2,803 hectáreas.
Silver Elephant Mining Corp. (SILEF)는 볼리비아에서 채굴 생산 계약(MPC)과 관련하여 어려움에 직면해 있습니다. 2024년 12월, 국가 광산 회사인 Comibol이 불법 채굴 활동을 주장하며 취소 통지를 발행했습니다. 이 회사는 이러한 주장을 강력히 부인하며 물리적 증거가 없고 모든 허가가 법적으로 유효하다고 주장하고 있습니다.
상황은 Andean Precious Metals Corp., 이전 고객이 Comibol과 Silver Elephant의 MPC 영토 내 지역에서 산화물 자재 구매 계약을 체결하면서 복잡해졌습니다. 이 발전은 두 회사 간의 일련의 비즈니스 상호작용에 이어 발생했으며, 여기에는 논란이 된 $1,000,000 지급이 포함된 종료된 마스터 서비스 계약이 포함됩니다.
Silver Elephant는 지급을 위한 중재 통지 및 계약 간섭에 대한 분쟁 통지를 포함한 법적 조치를 제기했습니다. 이 회사는 2,803헥타르 규모의 Pulacayo-Paca 프로젝트를 위한 MPC 재설정을 위해 적극적으로 행정 및 사법 조치를 추구하고 있습니다.
Silver Elephant Mining Corp. (SILEF) fait face à des défis avec son Contrat de Production Minière (MPC) en Bolivie après que Comibol, la société minière d'État, a émis un Avis de Résiliation en décembre 2024, alléguant des activités minières illégales. L'entreprise nie fermement ces allégations, affirmant qu'il n'y a aucune preuve physique et maintenant que tous les permis étaient légalement valides.
La situation est compliquée par Andean Precious Metals Corp., un ancien client, qui a conclu un accord d'achat avec Comibol pour des matériaux oxydés provenant de zones situées dans le territoire du MPC de Silver Elephant. Ce développement fait suite à une série d'interactions commerciales entre les entreprises, y compris un Master Services Agreement résilié ayant abouti à un paiement contesté de 1 000 000 $.
Silver Elephant a engagé des actions en justice, y compris un Avis d'Arbitrage pour paiement et un Avis de Litige concernant l'interférence contractuelle. L'entreprise poursuit activement des mesures administratives et judiciaires pour rétablir le MPC pour son Projet Pulacayo-Paca de 2 803 hectares.
Silver Elephant Mining Corp. (SILEF) sieht sich in Bolivien Herausforderungen mit seinem Mining Production Contract (MPC) gegenüber, nachdem Comibol, das staatliche Bergbauunternehmen, im Dezember 2024 eine Kündigungsmitteilung wegen angeblicher illegaler Bergbauaktivitäten ausgegeben hat. Das Unternehmen weist diese Vorwürfe entschieden zurück und erklärt, dass es keine physischen Beweise gibt und alle Genehmigungen rechtlich gültig waren.
Die Situation wird kompliziert durch Andean Precious Metals Corp., einen ehemaligen Kunden, der mit Comibol einen Kaufvertrag über oxidische Materialien aus Gebieten innerhalb des MPC-Gebiets von Silver Elephant abgeschlossen hat. Diese Entwicklung folgt auf eine Reihe von Geschäftsinteraktionen zwischen den Unternehmen, einschließlich eines gekündigten Master Services Agreement, das zu einer strittigen Zahlung von 1.000.000 USD führte.
Silver Elephant hat rechtliche Schritte eingeleitet, darunter eine Mitteilung über Schiedsverfahren zur Zahlung und eine Mitteilung über Streitigkeiten hinsichtlich vertraglicher Störungen. Das Unternehmen verfolgt aktiv administrative und gerichtliche Maßnahmen, um den MPC für sein 2.803 Hektar großes Pulacayo-Paca-Projekt wiederherzustellen.
- Company maintains legal validity of all permits and authorizations
- Multiple administrative and judicial options being pursued for MPC reinstatement
- Loss of Mining Production Contract (MPC) rights in Bolivia
- Competitor Andean secured rights to mine within company's former contract area
- Disputed $1,000,000 payment from Andean remains uncollected
- Legal uncertainty over mining rights affecting operations
Vancouver, British Columbia--(Newsfile Corp. - April 2, 2025) - Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE:1P2) ("Silver Elephant" or the "Company") provides an update on its ongoing efforts to reinstate the Mining Production Contract ("MPC") dated October 3, 2019 with the Corporacion Minera de Bolivia ("Comibol") which reports to the Bolivian Ministry of Mines and Metallurgy (the "Ministry of Mines").
The MPC is a commercial contract which grants the Company the exclusive rights to develop 2,803 hectares of the Pulacayo-Paca Project in Boliva as detailed in the news release dated October 7, 2019.
In December 2024 Comibol delivered a notice to the Company that Comibol was unilaterally cancelling the MPC (the "Notice of Cancelation") alleging that the Company conducted illegal mining activities. Since receiving the Notice of Cancelation, the Company and its representatives have met numerous times with Comibol representatives to seek clarification and to advocate for the reinstatement of the MPC. Following an internal investigation and based on available Comibol reports and site visit inspections, the Company has found is no physical evidence that it conducted any illegal mining. Further, the Company strongly maintains the position, which is affirmed by external Bolivian legal counsel, that all authorizations and permits issued to the Company to conduct activities in the MPC area were valid in accordance with Bolivian law, as they were duly issued and approved via written resolutions of Comibol's board of directors.
The Company notes that there are a number of mining companies conducting activities relying on similar permits and authorisations issued by Comibol's board of directors.
While the Company was meeting with Comibol officials advocating to have the MPC reinstated, it became aware that Andean Precious Metals Corp. ("Andean") a former customer of the Company, entered into a purchase and sales agreement with Comibol to purchase oxide materials from the Termidad and Real Del Monte concessions which are within the MPC area. Please refer to Andean's news release dated February 6, 2025 for further background information.
The Company, Andean and their related parties were parties to a Master Services Agreement (the "MSA") and Sales and Purchase Agreement (the "SPA") dated September 11, 2023 whereby Andean agreed purchase oxide materials extracted from the MPC area. Please refer to the Company's news release dated September 12, 2023 for further background information. The Company has delivered a dispute notice under the MSA to Andean demanding that it cease interfering with the MPC and reserves the right to pursue a claim against Andean for damages as a result of such interference.
By way of background:
May 10, 2021 - Silver Elephant and Andean execute a Confidentiality Agreement in anticipation of a potential transaction in Bolivia.
August 22, 2022 - Andean makes an offer to purchase all of Silver Elephant's Bolivian assets, including the Pulacayo-Paca Project part of which is covered by the MPC area.
September 11, 2023 - Andean, Silver Elephant and their related parties sign the MSA and SPA for Andean to purchase silver oxide from Silver Elephant produced from the MPC Area. Please refer to Company's news release dated September 11, 2023.
On December 18, 2024 Silver Elephant delivers a notice of default under the MSA and demands payment of the
$1,000,000 from Andean owed in accordance with the MSA (the "Additional Consideration").On December 30, 2024, Silver Elephant terminates the Master Service Agreement and demands payment of the Additional Consideration. Refer to the Company news release dated December 31, 2024.
On December 30, 2024, Silver Elephant receives the Notice of Cancelation of the MPC. Refer to Company news release dated December 31, 2024.
On December 31, 2024, Andean delivers a dispute notice to Silver Elephant alleging breach of contract due to the Notice of Cancelation of the MPC.
On January 14, 2025, Silver Elephant files a Notice of Arbitration and Statement of Claim seeking to enforce payment of the Additional Consideration after Andean's continued refusal to pay.
On February 6, 2025, Andean and Comibol entered into a sale and purchase agreement of oxide material from the Termidad and Real Del Monte concessions which are within the MPC area.
On February 22, 2025 Silver Elephant delivers to Andean an additional Notice of Dispute claiming contractual interference and demands Andean to cease interference with Comibol.
The Company has also sought assistance from other appropriate government authorities.
The Company continues to pursue all available administrative and judicial avenues to reinstate the MPC and will continue to keep all stakeholders informed.
About Silver Elephant Mining Corp.
Silver Elephant is a mineral exploration company with the Paca silver project and Triunfo gold project in Bolivia.
Further information on Silver Elephant can be found at www.silverelef.com.
SILVER ELEPHANT MINING CORP.
ON BEHALF OF THE BOARD
"John Lee"
CEO and Executive Chairman
For more information about Silver Elephant, please contact Investor Relations:
+1.604.569.3661 ext. 101
info@silverelef.com
www.silverelef.com
FORWARD-LOOKING INFORMATION
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Such forward-looking information, which reflects management's expectations regarding Silver Elephant's future growth, results of operations, performance, permitting status, business prospects and opportunities, is based on certain factors and assumptions and involves known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking information. Forward-looking information in this and other news releases includes, the potential for the Company to be reinstated the MPC, any implied outcome based on its request for Andean to cease interfering with the MPC or any claim for damages as a result of such interference.
Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future performance, events or results, and may not be indicative of whether such events or results will actually be achieved. A number of risks and other factors could cause actual results to differ materially from expected results discussed in the forward-looking information, including but not limited to any decision with respect to procedural matters under the arbitration with Andean, the efficiency of both the courts and arbitrators and the inherent unpredictability associated with dispute resolution in arbitration or through courts. Additional risk factors are set out in the Company's latest annual and interim management's discussion and analysis and annual information form (AIF), available on SEDAR+ at www.sedarplus.ca.
Forward-looking information is based on reasonable assumptions by management as of the date of this news release, and there can be no assurance that actual results will be consistent with any forward-looking information included herein. Readers are cautioned that all forward- looking statements in this news release are made as of the date of this news release. The Company undertakes no obligation to update or revise any forward-looking information in this news release to reflect circumstances or events that occur after the date of this news release, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/247025
FAQ
What caused Comibol to cancel Silver Elephant Mining's (SILEF) Mining Production Contract in Bolivia?
How many hectares does Silver Elephant's (SILEF) Pulacayo-Paca Project cover in Bolivia?
What legal actions has Silver Elephant (SILEF) taken regarding the contract cancellation?
What agreement did Andean Precious Metals make with Comibol affecting SILEF's mining area?
