Silver Elephant Announces Favorable Tax Tribunal Ruling in Mongolia
Silver Elephant Clears Massive Legal Hurdles as $24 Million Tax Liability Evaporates and $1 Million Arbitration Award Bolsters Cash Position
The most recent news (January 28, 2026) consists of two major legal victories that fundamentally alter the company's financial risk profile. First, the company received a favorable arbitration award against Andean Precious Metals Corp., resulting in a $1,000,000 USD award plus interest for breach of a Master Services Agreement. This follows a dispute regarding "Additional Consideration" triggered by silver prices. Second, a Mongolian Tax Tribunal cancelled a supplementary tax assessment of approximately CAD $24.6 million (MNT 63.8 billion) against the company’s subsidiary, Redhill. This assessment was related to a 2021 internal restructuring and had been a massive weight on the company’s balance sheet.
These dual announcements are "Material - Game Changer" for a micro-cap company with Silver Elephant's distressed balance sheet. - Liability Removal: The CAD $24.6 million tax assessment was previously carried as a "Provision for Mongolia Tax Dispute" on the balance sheet (recorded at $27.3M as of Sept 30, 2025). Its removal significantly improves the company’s net equity position, which was previously in a deep deficit. - Liquidity Injection: The $1,000,000 USD (approx. $1.35M CAD) net recovery from the Andean arbitration provides critical non-dilutive working capital. This is substantial given the company’s cash position was only $237,096 as of September 2025. - Operational De-risking: While the Mining Production Contract (MPC) for the core Pulacayo area remains in dispute with COMIBOL, the company has successfully pivoted to production at the Apuradita area (outside the disputed zone), reporting its first concentrate sales in late 2025.
Silver Elephant Mining Corp. is a silver producer and explorer with assets in Bolivia and coal/vanadium interests in Mongolia and North America. - Flagship Project: The Pulacayo-Paca Silver-Lead-Zinc project in Bolivia. - Current Status: The core project is split into the Apuradita area (currently in production/toll milling) and the MPC Area (under legal dispute with the Bolivian government entity COMIBOL). - Other Assets: Significant equity stakes in Oracle Commodity Holding Corp and CleanTech Vanadium, though it has been liquidating these positions to fund operations.