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Primero Mining to challenge Mexican tax ruling under NAFTA provisions

  • Primero Mining (NYSE:PPP +5.7%) says it will challenge a tax ruling by Mexican authorities through international arbitration under NAFTA provisions.
  • The ruling involves PPP’s flagship San Dimas gold-silver mine in Durango, Mexico; the miner says it struck an agreement with the Mexican tax authority in 2012 that the agency is now trying to retroactively change because it is a foreign investor.
  • The agreement is related to how PPP is taxed on sales of silver under a streaming agreement with Silver Wheaton.

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