Primero Mining Gets Legal Claim Filed By Mexican Tax Authorities

(RTTNews) - Canadian precious metals producer Primero Mining Corp. (P.TO, P.TO, PPP) announced Thursday that its Mexican subsidiary, Primero Empresa Minera, S.A. de C.V., has received a legal claim from the Mexican tax authorities, Servicio de Administración Tributaria or SAT. The claim seeks to nullify the Advance Pricing Agreement issued by SAT in 2012.

The APA confirmed Primero's basis for paying taxes on realized silver prices for the years 2010 to 2014 and represented SAT's agreement to accept that basis for those years.

The company said it believes this legal claim is without merit and it intends to vigorously defend the validity of its APA. The Company's operations continue as usual.

PEM and its legal counsel are in the process of completing a detailed review of the legal claim, which is in excess of 200 pages.

Primero's Mexican legal and financial advisors have informed the Company that SAT's judicial challenge to the validity of an APA is without precedent. The Company's advisors maintain that seeking to nullify an APA undermines the function of an APA, which is to assure a taxpayer of certainty.

The company, and its Mexican legal and financial advisors, continue to believe that it has filed its tax returns, and paid all applicable taxes, in compliance with Mexican tax laws.