Fortuna Provides an Update on the Status of Disputed Royalty at the San Jose Mine
Fortuna Provides an Update on the Status of Disputed Royalty at the San Jose Mine
Vancouver, March 5, 2020-- Fortuna Silver Mines, Inc. (NYSE: FSM) (TSX: FVI) is pleased to provide an
update on the status of the legal proceedings related to a disputed royalty on one of its extracting mining
concessions at the San Jose Mine, located in Oaxaca, Mexico.
In early February 2020, the Company initiated legal proceeding s against the Dirección General de Minas
(“DGM”) to contest the procedure taken by the DGM to cancel one of its mining concession s if the
disputed royalty plus VAT is not paid before March 15, 2020 (refer to Fortuna news release dated January
29, 2020).
The District Court in Mexico City admitted the Company’s legal proceedings and on March 2, 2020 also
granted a permanent stay of execution, which protects the Company from the cancellation of the
concession until a resolution by the Court is reached on the legal ity of the cance llation procedure. The
timing of a decision by the Court at first instance in this action against the DGM is uncertain and may take
several months. In the event that the Company is unsuccessful in these proceedings, it may appeal. If
ultimately the Company does not prevail , it may be required to pay the disputed royalty in order to
preserve the mining concession.
The administrative and legal proceedings initiated by the Company against the DGM in 2018 to remove
reference to the royalty on the title register, are progressing in accordance with the procedures of the
Mexican Administrative Court.
About Fortuna Silver Mines Inc.
Fortuna is a growth oriented, precious metals producer focused on mining opportunities in Latin America.
Our primary assets are the Caylloma silver Mine in southern Peru, the San Jose silver-gold Mine in Mexico
and the Lindero gold mine, currently under c onstruction, in Argentina. The Company is selectively
pursuing acquisition opportunities throughout the Americas and in select other areas. For more
information, please visit our website at www.fortunasilver.com.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO and Director
Fortuna Silver Mines Inc.
-2-
Trading symbols: NYSE: FSM | TSX: FVI
Investor Relations:
Carlos Baca
T (Peru): +51.1.616.6060, ext. 0
Forward-looking Statements
This news release contains forward -looking statements which constitute “forward -looking information” within the
meaning of applicable Canadian securities legislation and “forward -looking statements” within the meaning of the
“safe harbor” provisions of the Priv ate Securities Litigation Reform Act of 1995 (collectively, “Forward -looking
Statements”). All statements included herein, other than statements of historical fact, are Forward -looking
Statements and are subject to a variety of known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those reflected in the Forward -looking Statements. The Forward -looking
Statements in this news release may include, without limitation, statements about the Company’s administrative and
legal proceedings against the DGM, the outcome of the Company’s legal proceedings against the DGM to contest
the cancellation procedure, and the potential for the Company to be required to pay, or post a bond or other security
to pay the amoun t claimed to preserve its mining concession in the event that the Company’s legal proceedings to
contest the cancellation procedure are unsuccessful, how the Company would satisfy such payment and other
matters. Often, but not always, these Forward -looking Statements can be identified by the use of words such as
“estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”,
“planned”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that e vents, “could” or “should”
occur or be achieved and similar expressions, including negative variations.
Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any results, performance
or achievements expressed or implied by the Forward -looking Statements. Such uncertainties and factors include,
among others, changes in general economic conditions and financial markets; changes in prices for silver and other
metals; technological and operational hazards in Fortuna’s mining and mine development activities; risks inherent in
mineral exploration; uncertainties inherent in the estimation of mineral reserves, mineral resources, and metal
recoveries; changes to current estimates of mineral reserves and resources; changes to production estimates;
governmental and other approvals; changes in government, political unrest or instability in countries where Fortuna
is active; labor relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual
Information Form. Although the Company has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in Forward-looking Statements, there may be other
factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking Statements contained herein are based on the assumptions, bel iefs, expectations and opinions of
management, including but not limited to expectations regarding success in its legal proceedings which is based upon
advice from independent law firms, expected trends in mineral prices and currency exchange rates; the ac curacy of
the Company’s current mineral resource and reserve estimates; that the Company’s activities will be in accordance
with the Company’s public statements and stated goals; that there will be no material adverse change affecting the
Company or its pr operties; that all required approvals will be obtained; that there will be no significant disruptions
affecting operations and such other assumptions as set out herein. Forward -looking Statements are made as of the
date hereof and the Company disclaims any obligation to update any Forward -looking Statements, whether as a
result of new information, future events or results or otherwise, except as required by law. There can be no assurance
that the Company will be successful in its legal proceedings or that t hese Forward-looking Statements will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on Forward-looking Statements.