First Majestic Announce illegal Blockade at La Encantada
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FIRST MAJESTIC SILVER CORP .
Suite 1805 – 925 West Georgia Street
Vancouver, B.C., Canada V6C 3L2
Telephone: (604) 688‐3033 Fax: (604) 639‐8873
Toll Free: 1‐866‐529‐2807
Web site: www.firstmajestic.com; E‐mail: [email protected]
NEWS RELEASE
New York ‐ AG May 24, 2017
Toronto – FR
Frankfurt – FMV
Mexico ‐ AG
First Majestic Announce illegal Blockade at La Encantada
FIRST MAJESTIC SILVER CORP . (AG: NYSE; FR: TSX) (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 s tate 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 cur rently not known how long the bl ockade 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.
“It is very unfortunate that this group of individuals have cho sen to react in this manner instead of through dialogue and the
proper channels through its union leadership,” said Dustin VanDoorselaere, COO. “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 commented, “This is a minor set back 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.
ABOUT FIRST MAJESTIC
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its
existing mineral property assets. The Company presently owns an d operates six producing silver mines; the La Parrilla Silver
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Mine, the San Martin Silver Mine, the La Encantada Silver Mine, the La Guitarra Silver Mine, Del Toro Silver Mine and the Santa
Elena Silver/Gold Mine. Production from these six mines is proj ected to be between 11.1 to 12.4 million ounces of pure silver
or 16.6 to 18.5 million ounces of silver equivalents in 2017.
FOR FURTHER INFORMATION contact [email protected], visit o ur website at www.firstmajestic.com or call our toll free
number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP .
“signed”
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD‐LOOKING INFORMATION
This news release includes certain "Forward‐Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. When used in this news release, the words “anticipate” , “believe” , “estimate” , “expect” , “target” , “plan” , “forecast” , “may” ,
“schedule” and similar words or expressions, identify forward‐l ooking statements or information. These forward‐looking statements or information relate to,
among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of future production and costs
of production at our properties; estimated production r ates for silver and other payable metals produced by us, the estimated cost of development of our
development projects; the effects of laws, regulations and government policies on our operations, including, without limitation , th e la w s in M e xic o w h ic h
currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from government authorities; and
continued access to necessary infrastructure, including, without limitation, access to power, land, water and roads to carry on activities as planned.
These statements reflect the Company’s current views with respe ct to future events and are necessarily based upon a number of assumptions and estimates
that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and
contingencies. Many factors, both known and unknown, could caus e actual results, performance or achievements to be materially different from the results,
p e r f o r m a n c e o r a c h i e v e m e n t s t h a t a r e o r m a y b e e x p r e s s e d o r i m plied by such forward‐looking statements or information and the Company has made
assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in the spot and forward price of
silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the cu rrency markets (such as the Canadian
dollar and Mexican peso versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic
developments in Canada, Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the
business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures,
cave‐ins and flooding); risks relating to the credit worthiness o r f i n a n c i a l c o n d i t i o n o f s u p p l i e r s , r e f i n e r s a n d o t h e r p a r t i es with whom the Company does
business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining,
including those currently enacted in Mexico; employee relations ; relationships with and claims by local communities and indige nous populations; availability
and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining
necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; the
Company’s title to properties; and the factors identified under the caption “Risk Factors” in the Company’s Annual Information Form, under the caption “Risks
Relating to First Majestic's Business” .
Investors are cautioned agains t attributing undue certainty to forward‐looking statements or in formation. Although the Company has attempted to identify
important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended.
T h e C o m p a n y d o e s n o t i n t e n d , a n d d o e s n o t a s s u m e a n y o b l i g a t i o n, to update these forward‐looking statements or information to reflect changes in
assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.