First Majestic Silver Corp. (NYSE: AG) has agreed to temporarily suspend its NAFTA arbitration proceedings against the Government of Mexico, according to a press release from the company.

The arbitration, pursued under Chapter 11 of the North American Free Trade Agreement, relates to a legacy tax dispute involving First Majestic's Mexican subsidiary, Primero Empresa Minera, S.A. de C.V. The two parties have agreed in principle to a framework to settle the tax issue and jointly requested that the overseeing tribunal suspend proceedings while they work to finalize and implement the settlement.

The tribunal has issued an order temporarily suspending proceedings until December 31, 2026. If the parties require more time, they may request an extension into the first quarter of 2027. Should a final settlement not be reached and the parties determine that additional time would not be productive, First Majestic said it would request the tribunal lift the suspension and resume arbitration.

First Majestic is a silver and gold mining company with operations in Mexico and the United States. Its Mexican portfolio includes four producing underground mines: the Santa Elena, Los Gatos, San Dimas, and La Encantada mines.