LONDON (ShareCast) - (Sharecast News) - Fresnillo announced on Tuesday that Industrias Peñoles, its partner in a long-standing silver production agreement, had notified it of operational issues affecting the Sabinas mine, fully owned by Peñoles.
The FTSE 100 miner said Sabinas is the mineral source underpinning the Silverstream agreement, a contract established between Fresnillo and Peñoles in December 2007 that entitles Fresnillo to a portion of the mine's silver output.

Both companies had started discussions to evaluate the impact of the challenges on the Silverstream agreement.

While the extent of the operational difficulties and their potential effects on the agreement were uncertain, Fresnillo said significant adjustments to the terms could be reasonably anticipated.

The company said it would provide further updates as more information was available.

Reporting by Josh White for Sharecast.com.

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