Mining business Fresnillo plc (FRES) on Tuesday said that it has received notification from Industrias Peñoles, S.A.B. de C.V. that its Sabinas mine is experiencing operational difficulties impacting silver production.
The Sabinas mine, fully owned by Peñoles, is the subject and mineral source of the Silverstream Agreement entered into by Fresnillo and Peñoles in December 2007.
Fresnillo and Peñoles have initiated discussions in order to assess the extent of these operational difficulties and any associated impact on the Silverstream Agreement.
Although it is too early to reach any specific conclusions, at this time Fresnillo considers that there is a reasonable likelihood that the process may lead to significant adjustments to the Silverstream Agreement.
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