South American Silver (TSX:SAC) denies all accusations by the Bolivian Government and continues to vigorously exercise all of its rights, including through international arbitration, to obtain full compensation and the fair market value of the Malku Khota project.
As quoted in the press release:
On Wednesday, October 3, 2012, Mario Virreira, the Bolivian Minister of Mines and Metallurgy, denied that Bolivia owed South American Silver any compensation whatsoever for the expropriation of CMMK’s mining concessions. At a press conference on Friday, October 5, 2012, Virreira stated that the Government intends to conduct an investigation into alleged wrongdoing by South American Silver and commence legal action for purported damages to the State caused while operating, allegedly illegally, in the country. These statements have been echoed by Edgar Pinto, the newly installed President of the Bolivian State Mining Company (COMIBOL).
South American Silver denies all accusations by the Government which are patently false and have no factual basis. Bolivia’s actions clearly violate South American Silver’s rights under the international investment treaty between the United Kingdom and Bolivia as well as under Bolivian and international law. As previously announced (see SAC PR 12-13, August 2, 2012), South American Silver will vigorously exercise all of its rights, including through international arbitration, to obtain full compensation, including the fair market value of the Malku Khota project.