Silver Bull Awaits Verdict in $375M Arbitration Case Against Mexico

VANCOUVER, BC – April 16, 2026 – Silver Bull Resources, Inc. is bracing for a decision that could define its future, as an international tribunal prepares to render its final award in the company's arbitration case against the United States of Mexico. The Vancouver-based mining firm announced today that the World Bank's International Centre for Settlement of Investment Disputes (ICSID) is expected to deliver its verdict by the end of May 2026, concluding a years-long battle over an ongoing blockade at its flagship Sierra Mojada Project.

The impending decision represents the culmination of a complex legal process initiated under the legacy provisions of the North American Free Trade Agreement (NAFTA) and the United States–Mexico–Canada Agreement (USMCA). While the company also confirmed stability in its leadership with the re-election of its board of directors at its annual shareholders' meeting, all eyes are now on the tribunal's ruling, which carries significant financial implications for the company and broader consequences for foreign investment in Mexico's resource sector.

A High-Stakes Bet on International Law

At the heart of the dispute is a claim for damages most recently valued at US$374.9 million. Silver Bull alleges that Mexico violated its international treaty obligations by failing to take action against what the company terms an "illegal blockade" of its Sierra Mojada mine, an action it considers an unlawful expropriation of its investment. The blockade, which began in September 2019, has completely halted operations at the potentially lucrative site.

Navigating the costly and protracted world of investor-state arbitration has been made possible for Silver Bull through a sophisticated financial arrangement. In September 2023, the company secured a Litigation Funding Agreement for up to US$9.5 million with Bench Walk Advisors LLC. This non-dilutive financing covers legal fees, tribunal costs, and corporate expenses, allowing the company to pursue its massive claim without depleting its own resources or diluting shareholder equity. In return for assuming the financial risk, the litigation funder will receive a contingent portion of any damages awarded to Silver Bull.

This funding model underscores the high-stakes nature of the case. With its primary asset rendered inoperable, the arbitration award represents the company's most critical path to realizing value from its investment. The legal proceedings have been extensive, involving the submission of detailed memorials and post-hearing briefs throughout 2024 and 2025, with the final hearing held in Washington, D.C., in October 2025. The upcoming award from the tribunal will be the definitive chapter in this high-stakes legal and financial drama.

The Roots of the Conflict: A Mine in Limbo

The Sierra Mojada Project is no minor asset. Located in the historic mining district of Coahuila, Mexico, the project hosts a significant open-pittable resource of zinc and silver. According to technical reports, the site contains an estimated 5.35 billion pounds of zinc and 87.4 million ounces of silver, representing a substantial deposit that has been stalled for nearly seven years.

Silver Bull asserts that the blockade was initiated by a small group within a local mining cooperative, Mineros Norteños, over what the company describes as a "frivolous lawsuit" concerning royalty payments that were not yet due. The company has maintained that the actions of this group are not representative of the broader community and that Mexican authorities have failed in their duty to uphold the rule of law and remove the blockade.

The situation on the ground, however, appears complex. While Silver Bull's official position is that the blockade remains ongoing, conflicting reports have emerged. In late 2024, a separate entity known as Sierra Mojada Resources Inc. announced that the cooperative had unanimously approved a resolution to conditionally end the blockade, citing the "catastrophic" economic impact of the long-standing dispute on the local community. This divergence highlights the intricate social dynamics and competing narratives that often accompany major resource extraction projects, where the lines between legal disputes, community grievances, and economic desperation can become blurred.

A Test Case for Mexico's Investment Climate

Silver Bull's arbitration is not occurring in a vacuum. It serves as a prominent test case amid a shifting and increasingly challenging landscape for foreign investors in Mexico, particularly in the mining sector. Under the administration of President Andrés Manuel López Obrador, Mexico has pursued a policy of resource nationalism, culminating in sweeping mining law reforms in 2023.

These reforms have introduced significant uncertainty for investors by shortening concession terms, replacing the previous system with a public bidding process, and tightening requirements for water usage and community consultations. Furthermore, mining is no longer considered a "preferential" activity, removing automatic surface access rights and complicating land-use agreements. These changes, combined with the 2022 nationalization of lithium reserves, have signaled a less predictable and more state-controlled approach to natural resources.

Consequently, Mexico has become one of the most frequently sued countries in investor-state dispute settlements globally, with the mining sector accounting for a substantial portion of the claims. Cases like those brought by Legacy Vulcan over a limestone quarry and Odyssey Marine Exploration over denied seabed mining permits paint a picture of a contentious environment. The outcome of Silver Bull's case will be closely watched as an indicator of the effectiveness of NAFTA and USMCA's investment protection provisions in holding a sovereign state accountable for its actions—or inactions. A significant award in favor of Silver Bull could embolden other companies to pursue similar claims, while a ruling in favor of Mexico could further chill foreign investment in an already wary sector. As the end of May approaches, the tribunal's decision will not only determine the fate of a single mining project but will also send a powerful message about the rules of engagement for foreign capital in Mexico.