Silver Elephant Mining Faces Contract Cancellations

Silver Elephant Mining Corp. has seen its shares plummet by 43% following the cancellation of its Pulacayo Mining Production Contract by Bolivia's state-owned Corporacion Minera de Bolivia (Comibol), which cited alleged illegal mining as the reason. The company asserts it has operated within legal parameters and intends to appeal the cancellation under Bolivian law. Concurrently, Silver Elephant terminated its Mining Services Agreement and Sale and Purchase Agreement with Andean Precious Metals Corp. due to a failure to meet payment obligations totaling $1 million. The Pulacayo contract, signed in 2019, granted Silver Elephant exclusive mining rights for up to 30 years, but its cancellation has halted all activities in that area until the dispute is resolved. Despite this setback, the company is continuing operations in its nearby Apuradita concession, which is not affected by the contract cancellation. Silver Elephant aims to maintain its positive relationship with local communities amid these challenges.