Silver Valley Metals Announces Positive Resolution of Issues Relating to its Mexi-Can Sulphate of Potash and Lithium Project; Exploration to Recommence
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Vancouver, British Columbia--(Newsfile Corp. - January 16, 2024) - Silver Valley Metals Corp. (TSXV: SILV) (OTCQB: SVMFF) ("Silver Valley" or the "Company"), a brownfield exploration company, is delighted to announce a favorable resolution of issues relating to its Mexi-Can Sulphate of Potash and Lithium Project ("the Mexico-Canada Project" or "Mexi-Can Project"). Concurrently, the Company is preparing to resume exploration activities in Mexico.
Background: Legislative Impact on Mexi-Can Project
In response to the significant legislative development on April 20, 2022, through the "Decree amending and adding various provisions of the Mining Law," (the "Lithium Decree") Silver Valley Metals Corp.'s Mexican subsidiary ("Silver Valley Mexico") took legal measures to safeguard its interests. The Decree marked a crucial structural reform in Mexico's lithium sector, leading to the creation of the company "Lithium for Mexico" ("LitioMx") and the declaration of lithium as a public utility and national heritage restricting the granting of new concessions, licenses, contracts, permits, or authorizations in this area.
Link to the full text of the Lithium Decree.
As a result of the Decree, Silver Valley Mexico filed two separate Indirect Amparos (an Amparo is defined as an extraordinary constitutional appeal, which may be filed in federal court, by Mexicans and by foreigners. It is often referred to as a "constitutional protection lawsuit") challenging specific articles of the Mining Law, as amended by the Lithium Decree, claiming violations of constitutional rights.
Silver Valley Mexico holds existing concessions in Mexico. With the recent results from the Supreme Court's decisions from the Amparos filed by Silver Valley Mexico, it is apparent that the Lithium Decree has not impacted the Company's concessions. The Court ruled that the Mining Law, as amended by the Lithium Decree, has not impacted the Company.
Several Articles of the Mining Law, as outlined in the Lithium Decree, specify the responsibilities and protections regarding lithium exploration, exploitation, beneficiation, and use. Notably, the legislation did not indicate any intention to cancel, suspend, withdraw, or extinguish rights acquired by mining companies in relation to lithium prior to the Lithium Decree.
Although it is true that the Lithium Decree, at first, did not establish anything in relation to the mining concessions granted before the entry into force of the Lithium Decree and in relation to the procedures that were in process, this situation was remedied by the subsequent reforms that the Mining Law underwent; specifically another such mining reform following the reform on lithium which was dated May 8, 2023, by the enactment of the "Decree amending, adding and revoking several provisions of the Mining Law, National Waters Law, Environmental Protection and Balance Law, and Wastes Management and Prevention Law" (the "Mining Law Decree"). The Mining Law Decree, clarified that existing concessions, including those held by Silver Valley Mexico, remain unaffected until their full expiration. The Company's concessions, with validity until 2059 and 2060, are legally protected, ensuring continuity.
Link to the full text of the May 8, 2023 Mining Law Decree.
The amendments to the Mining Law arised from the Mining Law Decree will have no legal impact until the full expiration of Silver Valley Mexico's mining concessions, since, as for the Lithium Decree , the loss of rights or the cancellation, suspension or termination of the concession titles, or of exploration activities, was not established, including the exploitation, or use, of lithium, with respect to rights previously granted and acquired by the concessionaires.
The current regulatory landscape indicates a dual legal regime for lithium operations in Mexico. Existing concessions are monitored by the Ministry of Economy, while post-reform exploration and exploitation will be overseen by the Mexican State through the state-owned entity "Lithium for Mexico," namely LitioMx.
Partnership Discussions with LitioMX
Despite a positive outcome from the recent Amparo decisions, coupled with the later enacted May 8, 2023 mining reform further supporting the Company's ownership, Silver Valley continued to actively consider a joint venture partnership with LitioMx. Silver Valley considered a partnership beneficial to all stakeholders', with the right deal in mind. However, after careful consideration, LitioMx recently decided to prioritize other Mexican projects. This decision aligns with Silver Valley's appreciation for LitioMx's focus on lithium-specific ventures, considering the Mexi-Can Project's significant sulphate of potash ("SOP") component.
Silver Valley appreciates LitioMx's support and remains open to future collaboration opportunities as the lithium landscape evolves. LitioMx shared the same sentiments with Silver Valley.
With the news of LitioMx voluntarily deciding to not participate in the development of the Mexi-Can Project and the positive news received from the Supreme Court of Mexico, Silver Valley is once again ready to move this exciting project forward.
Exploration Set to Recommence
With legal uncertainties resolved, Silver Valley is poised to recommence exploration activities at the Mexi-Can Project. Silver Valley remains committed to delivering updates on these activities in due course.
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About: Silver Valley Metals:
Silver Valley Metals Corp. is a Canadian exploration company comprised of a group of experienced exploration, mining, and financing specialists focused on the pursuit of mineral discovery and development. We are focused on the advancement of strategic and precious mineral properties including Lithium-Potash in Mexico and Silver-Zinc-Lead in northern Idaho, USA.
About: Mexi-Can Sulphate of Potash and Lithium Project:
Silver Valley Metals Corp. owns a
About: Ranger-Page project:
The Ranger-Page Project ("The Project") is in the Silver Valley, northern Idaho, USA, 60 kilometers east of Coeur d'Alene and 1 kilometer from the I-90 freeway. In 2020 Idaho was ranked the first in the world in policy perception and 9th best mining jurisdiction (Fraser Institute Annual Mining Survey). The Project borders the famous Bunker Hill Mine to the east and, for the first time, consolidates the western extent of the prolific Silver Valley mining corridor by one operator in the past 100+ years.
The Project comprises six historical mines on patented claims, without royalties. The largest of these, the Page Mine, was a top ten producer in the Silver Valley yielding over 1.1 billion pounds of zinc and lead and 14.6 million ounces of silver. The Page Mine has high-grade silver-zinc-lead historic reserves and remains open at depth and along strike beyond what has been identified to date.
Historical mining on the properties has shared underground infrastructure from the larger Page mine to the Blackhawk mine. The Company has underground mining data and surface geological data that supports high-grade silver-zinc-lead mineralization present within the other shallow, undeveloped mines. These mines remain open at depth, and laterally along strike.
Exploration potential beyond the historic mines is considered significant as modern systematic exploration is being applied to the project for the first time.
On behalf of the Board of Directors of Silver Valley Metals,
"Brandon Rook"
Brandon Rook, President & CEO, Director
For further information please contact: 604-800-4710
Email: info@silvervalleymetals.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/194366
FAQ
What is the recent favorable resolution announced by Silver Valley Metals Corp. regarding Mexi-Can Project?
What legal measures were taken by Silver Valley Mexico in response to the Lithium Decree?
What impact did the Lithium Decree have on Silver Valley Mexico's concessions?
What is the current regulatory landscape for lithium operations in Mexico?
What is the status of the partnership discussions with LitioMx?
What is the current status of Silver Valley's exploration activities at the Mexi-Can Project?
