Mexico’s proposed higher mining royalties could block nearly $7bn in investments
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TORONTO, Aug. 8, 2012 /PRNewswire / — Excellon Resources Inc. CA:EXN -5.43% (“Excellon” or “the Company”) announced Wednesday that it has declared force majeure in respect of its concentrate delivery contracts with Consorcio Minero De Mexico Cormin Mex, S.A. DE C.V. (“Trafigura”), located in Manzanillo, Mexico, due to the ongoing illegal blockade at the Company’s La Platosa mine in the state of Durango, Mexico. The blockade was commenced by the Ejido de La Sierrita (the “Ejido”) on July 8, 2012, with the assistance and funding of the non-governmental organization ProDESC and Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana, affiliated with the United Steelworkers Union of Canada.
Criminal charges for trespassing were laid more than four weeks ago, immediately following the commencement of the blockade. On the evening of Monday, August 6, 2012 the Company notified the Mexican federal government that it would be imminently required to declare force majeure unless the illegal blockade was removed. Despite that notice and the evident urgency of the situation, no actions were taken by authorities to prosecute the outstanding criminal charges and uphold the law.
The Company continues to meet regularly with local, state and federal governments in Mexico in an effort to resolve the situation. La Platosa remains under care and maintenance during the illegal action.
