Item 87.01 Other Events.
London Court of International Arbitration
On January 27, 2022, DynaResource, Inc. (the "Company") received word from its
counsel that the London Court of International Arbitration issued a First Final
Partial Award (the "Partial Award"), in favor of Mercuria Energy Trading S.A., a
Swiss company ("Mercuria") and against Mineras de DynaResource S.A. de C.V.
("Mineras"), a subsidiary of the Company which is chartered in Mexico and whose
offices are also located in Mexico.
The Partial Award requires that Mineras pay Mercuria the sum of $1,676,014 for
an undersupply of metal concentrate production between October 2019 and December
2020. The Partial Award also requires that Mineras pay Mercuria the sum of
$146,659 in connection with a net overpayment by Mercuria for metal
concentrates.
The arbitration panel retained jurisdiction to address any outstanding fees and
expenses.
The Company notes the following: since Mineras is a company of Mexican
nationality, under Mexican law Mineras has the right to legally oppose the
recognition and enforcement of the Partial Award and any supplemental award.
Recent Change of Law in Mexico
Due to a recent change of law in Mexico, the outsourcing role that Mineras has
played for the Company's mining operations in Mexico, was no longer consistent
with Mexican law. Consequently, the contractual relationships between Mineras
and DynaResource de Mexico, S.A. de C.V., as owner of the mines, has been
terminated.
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