First Majestic Silver Receives Favourable Ruling for $89.6 Million

First Majestic Silver Corp. (TSX:FR, NYSE:AG) announced that they received a ruling in their favour regarding litigation against Hector Davila Santos and Minera Arroyo Del Agua, S.A. de C.V.

As quoted in the press release:

The Honourable Mr. Justice Myers concluded that the Bolaños opportunity belonged to FSR and that Hector Davila did in fact breach his fiduciary duty by acquiring the Bolaños Mine. Mr. Justice Myers calculated in his ruling a net opportunity loss in favour of First Majestic in the amount of US$89.6 million, after reducing an initial amount of US$111 million for the post-acquisition investments of Hector Davila at the Bolaños Mine and applying a 15% reduction contingency.

First Majestic’s President and CEO, Keith Neumeyer, said:

We are obviously very pleased with the ruling of US$89.6 million in our favour from the BC Supreme Court. It has long been my belief that the actions of Hector Davila in early 2006, when we purchased the majority interest in FSR, were inappropriate. After a lengthy, time consuming, expensive and difficult legal process, it is gratifying to have the BC Supreme Court agree with our arguments and grant us such a large award.

To view the whole press release, click here.