Silver Elephant Receives Favorable Arbitration Award in Dispute with Andean Precious Metals
Massive $24M Tax Victory and Arbitration Award Rescue Distressed Balance Sheet
The most recent news (January 28, 2026) reveals two significant legal victories for Silver Elephant. First, the Mongolian Tax Tribunal dismissed a supplementary tax assessment of MNT 63.8 billion (~CAD $24.6 million) against its subsidiary, Redhill. This removes a massive liability that was previously carried as a provision on the balance sheet. Second, the company won an arbitration award against Andean Precious Metals Corp. for USD $1.0 million plus interest (approx. USD $36k) regarding a breach of a Master Services Agreement. This follows a period of aggressive, small-scale private placements (CAD $0.15 - $0.25 per unit) and the divestment of shares in associated companies (Oracle Commodity) to maintain liquidity.
- Financial Salvage: The removal of the CAD $24.6 million tax provision is transformative. As of September 30, 2025, the company had a massive deficit of $262 million and a negative equity position. Removing this liability significantly repairs the balance sheet.
- Immediate Liquidity: The USD $1 million arbitration award plus interest is critical. As of the Sept 2025 financials, the company held only $237,096 in cash. This award effectively multiplies their cash position.
- Operational Validation: The news from November 2025 regarding the first silver concentrate sale from the Apuradita Paca project confirms the transition from explorer to producer, though the scale remains small (30-50 tonnes per day extraction).
- Ongoing Conflict: Despite the arbitration win, the company remains in a dispute with COMIBOL over the cancellation of its Mining Production Contract (MPC) in Bolivia. This remains a major overhang on the Paca project's primary area.
Silver Elephant Mining Corp. is a silver and base metals developer with assets in Bolivia and coal assets in Mongolia. - Flagship Project: The Pulacayo-Paca project in Potosi, Bolivia. - Apuradita Area: Currently in production via toll milling. It is 100% owned and notably outside the disputed COMIBOL contract area, allowing current operations to continue despite the legal feud. - Project Status: Small-scale production has commenced with first sales completed in November 2025. Grades are high (approx. 400+ g/t Ag), but the project relies on third-party toll mills 180km away.