Silver Bull Resources' (SVB.TO) has plunged 87.6% after the company said Monday its arbitration case against Mexico was dismissed, due to a lack of jurisdiction and/or for being time-barred.
Silver Bull has been ordered to pay part of Mexico's legal costs totaling US$998,000.
The dispute arose from Mexico's "actions and omissions" regarding the blockade of Silver Bull's Sierra Mojada Project, which began September 2019, and remains ongoing. The company began arbitration proceedings in 2023 against Mexico under the United States-Mexico-Canada Agreement (USMCA) and the North American Free Trade Agreement (NAFTA).
Silver Bull is analyzing the tribunal's decision with its legal advisers to evaluate its options, including an application to annul the award, which must be filed within 120 days.
The company is also also evaluating other options and projects, including the possibility of restarting the Sierra Mojada Project, which is its sole asset.
"In the company's view, the tribunal chose to apply a tight and narrow interpretation of the expiry of NAFTA and the related time-bar provisions, notwithstanding that the blockade commenced in September 2019 while NAFTA was in full force and effect and that the company submitted its claims against Mexico before the expiry of the three-year NAFTA legacy-claim period under the USMCA transition regime," chief executive Tim Barry said.
Silver Bull shares are down $0.70 to $0.115 on the Toronto Stock Exchange.
Price: $0.11, Change: $-0.70, Percent Change: -86.42%