First Majestic Announce illegal Blockade at La Encantada

First Majestic Silver (NYSE:AG) (TSX:FR) (the “Company” or “First Majestic”) announces that a rogue group of union workers have halted activities and blocked the accesses at the La Encantada Silver Mine in the state of Coahuila, Mexico. The illegal blockade arose after some of the unionized individuals did not agree with the bonus that the company and the National Union of Miners, Metallurgists, Steelworkers and Similar Workers of Mexico (National Union), agreed to offer the miners in lieu of profit sharing.

Despite an agreement with the National Union, this rogue group of workers unilaterally decided to form a blockade, which has disrupted operations for all of the mine’s employees. It is currently not known how long the blockade will continue, however, First Majestic is working with the leadership of the National Union in order to resume operations and have the workers return to work.

Company COO Dustin VanDoorselaere commented:

“It is very unfortunate that this group of individuals have chosen to react in this manner instead of through dialogue and the proper channels through its union leadership,” said Dustin. We have been working very diligently with the leadership of the National Union to provide a fair solution for all union employees.”

Keith Neumeyer, President & CEO said:

“This is a minor setback in our plans for renewed investment at La Encantada focusing on underground development and brownfields exploration, which will over time result in increased throughput rates and higher head grades. As part of our 2017 capital expenditure program, La Encantada is receiving the highest level of investment of our six mines, including improvements to the camp facilities and the investment in the new roasting project.”

The company has always had a positive relationship with the National Union and continues to work to find a resolution to the conflict. Unfortunately, the conditions in Mexico are difficult with low metal prices and higher taxes and fuel costs. Unfortunately, this type of work disruption is increasingly occurring in many other mining operations throughout the country of Mexico.

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