Regulatory
Silver Elephant Files Lawsuit Against Andean Precious Metals Over Alleged Interference with Pulacayo-Paca Mining Production Contract
Silver Elephant files a cross-border lawsuit as Andean Extracts pulls $100m from the Pulacayo oxide deposit, intensifying the legal dispute over the contract.
Executive Summary
- Silver Elephant Mining Corp. filed a civil claim in the BC Supreme Court against Andean Precious Metals Corp. and three executives, alleging they improperly induced Bolivia's state mining company (COMIBOL) to terminate the company's 15-year mining production contract for the Pulacayo-Paca Project on December 16, 2024.
- The lawsuit seeks unspecified general, special, and punitive damages, noting that Andean has since extracted approximately 250,000 tonnes of oxide material valued at ~US$100 million under new exclusive agreements with COMIBOL.
- This legal action follows a favorable January 2026 arbitration award regarding a separate commercial agreement, which ordered Andean to pay ~US$1.0 million plus interest.
- The Company intends to pursue all legal and administrative remedies in both British Columbia and Bolivia to protect its rights and potentially reinstate the terminated contract.
Material Impact
- The filing is a direct, expected escalation of the ongoing dispute following the December 2024 contract termination and the January 2026 arbitration win.
- While the allegations are serious and the potential damages sought are substantial, cross-border litigation involving a state-owned entity (COMIBOL) and a foreign operator carries significant enforcement and jurisdictional risks.
- The news does not immediately alter operational cash flows, production schedules, or the company's balance sheet. It serves as a procedural step to preserve legal claims and apply pressure on Andean.
- Given the incremental nature of the filing and the long timeline typical of such disputes, the immediate market impact is muted. It is a routine legal development rather than a fundamental shift in the company's operational or financial trajectory.
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Company Overview
- Silver Elephant Mining Corp. is a mineral exploration and early-stage production company focused on precious and critical metals.
- Flagship Project: Apuradita Paca Project (Bolivia). Currently in early production via toll-milling. The company has successfully shipped multiple batches of silver-lead-zinc concentrate, with grades averaging ~412 g/t Ag, 1.09% Pb, and 0.38% Zn. Monthly production targets range from 300 to 600 tonnes of mineralized material.
- Pulacayo Project: Historically the core asset, featuring a 106.7 million oz silver indicated resource. The 15-year production contract with COMIBOL was terminated in Dec 2024, triggering the current legal dispute.
- Robinson-Lasher Project: Newly acquired in June 2026 from CleanTech Vanadium Mining Corp. Located in Kentucky, ~90 miles from a planned US$7.4B Korea Zinc smelter. Focuses on zinc, germanium, and gallium. Requires US$2M in exploration and a technical report by Sept 2029.
- Other Assets: El Triunfo (sold to CleanTech), Gibellini (spun out), Minago (spun out), and impaired Mongolian coal projects.
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Jul 06, 2026 · 12:27