Regulatory
SILVER BULL RESOURCES ANNOUNCES DISMISSAL OF ITS NAFTA CLAIM AGAINST MEXICO ON JURISDICTIONAL AND TIME LIMITATIONS
Silver Bull’s Sierra Mojada Arbitration Collapses; Tribunal Hands a Stunning Dismissal and a $1M Bill, Crushing the Only Path Past a Six‑Year Blockade
Executive Summary
- An ICSID tribunal has dismissed all of Silver Bull’s arbitration claims against Mexico under NAFTA/USMCA. The claim—filed in March 2023 over an illegal blockade of the Sierra Mojada project that began in September 2019—was rejected on jurisdictional grounds and time‑bar provisions.
- NAFTA Article 1110 was dismissed for lack of jurisdiction. Claims under Articles 1102, 1103, and 1105 were dismissed as untimely for conduct before June 28, 2020, outside jurisdiction for post‑June 30, 2020 conduct, and unsupported by proven loss or damage for the narrow two‑day window in between.
- The company must pay Mexico’s legal costs of approximately US$998,000.
- Silver Bull has 120 days to evaluate an annulment; an ad hoc committee review would take 18–36 months. Management strongly disagrees with the ruling, arguing the tribunal applied an overly narrow interpretation of NAFTA’s expiry and time‑bar clauses.
- Simultaneously, the company says it is evaluating other options, including potentially restarting the Sierra Mojada project given current silver (∼US$75/oz) and zinc (∼US$1.60/lb) prices. The NI 43‑101 resource remains unchanged at 70.4 Mt grading 3.4% Zn and 38.6 g/t Ag (5.35 billion pounds zinc, 87.4 million ounces silver), with high‑grade subsets highlighted.
Material Impact
- The news is materially negative. Silver Bull’s only asset—the Sierra Mojada project—has been physically and legally inaccessible since September 2019. The NAFTA/USMCA arbitration was the sole catalyst that could have either forced a resolution or delivered monetary compensation. Its outright dismissal eliminates that pathway.
- The company’s financial position is precarious. As of the latest fiscal year (ended October 31, 2025), Silver Bull reported negative total equity of US$ 6.9 million, a net loss of US$ 13.1 million (driven largely by the arbitration and associated funding costs), and cash of only US$ 1.14 million. The immediate obligation to pay Mexico’s costs (∼US$ 998k) will consume virtually all of that cash.
- Litigation funding from Bench Walk Advisors (up to US$ 9.5 million) was specific to the arbitration; with the case dismissed, that lifeline is effectively severed. The company has no revenue, no operating mine, and no diversified project portfolio to fall back on.
- The share price had run from $0.22 in June 2025 to $0.81 by May 29, 2026—a rally of nearly 270%—almost certainly pricing in optimism around the arbitration. A dismissal of this finality will cause a sharp repricing.
- Management’s mention of “restarting Sierra Mojada” while the blockade remains in place rings hollow without a legal or political breakthrough. There is no evidence the blockade condition has changed; it has persisted for over six years.
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Company Overview
- Silver Bull Resources is a mineral exploration and development company. Its sole asset is the Sierra Mojada project, a historical open‑pit oxide zinc‑silver deposit located in Coahuila, Mexico.
- The NI 43‑101 mineral resource estimate (Measured & Indicated) stands at 70.4 million tonnes grading 3.4% zinc and 38.6 g/t silver, containing 5.35 billion pounds of zinc and 87.4 million ounces of silver. A higher‑grade zinc zone (13.5 Mt at 11.2% Zn) and high‑grade silver zone (15.2 Mt at 114.9 g/t Ag) exist within the global resource.
- The project has been under an illegal community blockade since September 2019, preventing any site work or development. The company has attempted to resolve the situation through domestic legal and administrative channels, and later through international arbitration.
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Apr 16, 2026 · 16:15