FSM - Fortuna Silver gets three month reprieve from lenders in Mexican mine issue

Fortuna Silver Mines (NYSE:FSM) says its creditors will give it three months to obtain additional legal permission to keep operating its San Jose mine in Mexico after the denial of a key environmental permit. The creditors had required a permanent injunction by the end of this week allowing it to continue operations. The mine has been operating since 2011, but its main environmental authorization expired last month, despite company efforts to seek a 10-year extension from Mexico's environment ministry, and it continues to run on a temporary basis only through a court order. Fortuna says it is in compliance with all environmental laws and will submit an appeal to the denial in Mexican courts by the end of this month. San Jose was Mexico's seventh biggest silver producer last year, with 6.2M oz. Fortuna reported record total production of 87,950 gold equiv. oz. during Q3, including 1.44M oz. of silver

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Fortuna Silver gets three month reprieve from lenders in Mexican mine issue