Vancouver, British Columbia, December 31, 2024 — Silver Elephant Mining Corp. (“Silver Elephant” or the “Company”) (TSX: ELEF, OTCQB: SILEF, Frankfurt: 1P2) reports that the Company received a notice of cancellation of its Pulacayo Mining Production Contract (“MPC”) from Corporacion Minera de Bolivia, a state-owned mining company (“Comibol”).
Comibol’s one page notice to the Company cites alleged illegal mining as the grounds for the MPC cancelation. The Company maintains that it has operated in full compliance and received proper authorisations for its activities in the area covered under the MPC (“MPC area”). The Company is not aware of any illegal mining by third parties.
The MPC was executed on October 3, 2019 between a Silver Elephant Bolivian subsidiary and Comibol. The MPC, which remained subject to ratification from the Bolivian congress, granted the Company’s subsidiary an exclusive right to develop and mine at certain Comibol concessions located in the Pulacayo and Paca areas for up to 30 years. Comibol reports to the Bolivian Ministry of Mining and Metallurgy and controls approximately 163 Bolivian mining concessions.
The notice of MPC cancelation does not affect Silver Elephant’s Apuradita mining concession next to Comibol’s Paca concessions. The Company is currently developing a tunnel to access silver sulphide materials at Apuradita, a mining concession which is registered directly under the name of a Silver Elephant Bolivian subsidiary.
The Company is preparing to appeal the cancelation pursuant to the terms of the MPC, which is a commercial contract, and under Bolivian law. No mining activities may take place in the MPC area until the dispute is resolved according to Bolivian law.
The Company intends to continue to maintain its positive social relations with local communities, which the Company’s Bolivian subsidiaries have spent more than a decade in building.
About Silver Elephant Mining Corp.
Silver Elephant Terminates Management Services Agreement with Andean Precious Metals Corp.
Vancouver, British Columbia, December 31, 2024 — Silver Elephant Mining Corp. (“Silver Elephant” or the “Company”) (TSX: ELEF, OTCQB: SILEF, Frankfurt: 1P2) announces that it has terminated a Mining Services Agreement (“MSA”) and a related Sale and Purchase of Paca Materials agreement (the “SPA”) with Andean Precious Metals Corp. and its related parties, (“Andean”) for Andean’s failure to fulfill its payment obligations.
The MSA and SPA were signed on September 11, 2023 and detailed in the Company news release dated September 12, 2023.
The Company terminated the MSA and SPA after Andean failed to pay US$1,000,000 which was due on December 18, 2024 and the related cure period lapsed. Operations relating to the MSA and SPA have since then stopped.
The Company is preparing appropriate steps to collect the payment due from Andean under the MSA and SPA.
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 |
