Americas Mining Company Wins Right to Appeal Judgement in ASARCO Ruling without Posting Cash Bond

Business Wire, June 03, 2009

PHOENIX -- Americas Mining Corporation (AMC), an affiliate of Grupo Mexico SAB de CV (GMEXICO), announced that U.S. Judge Andrew S. Hanen of the Fifth Circuit District Court in Brownsville, Texas yesterday granted Grupo Mexico the right to post an alternative financial guarantee to secure its Motion for Stay. In its opinion, the Court said it would allow AMC to place in escrow shares of Southern Copper Corporation stock rather than a cash bond, as was requested by ASARCO, to secure the enforcement of any judgment at appeal. The appeal is expected to take at least a year.

In rendering its opinion, the Court noted that requiring AMC to post a full cash bond would “impose an undue financial burden and that ASARCO’s need for security can be satisfied by alternate means.” It further noted that “…if this Court were to require AMC to post a full bond, ASARCO’s creditors would be denied the benefit of competition among three, rather than two, plans for creditor support.” This assertion underscores the Court’s belief in the feasibility of AMC’s plan of reorganization since it authorizes AMC to put shares in escrow rather than pay a full cash bond, which would potentially impair AMC’s ability to fund its reorganization plan.

While AMC disagrees with the Court’s original judgment and it is confident that the judgment will be overturned on appeal, it is pleased that the Court took steps to benefit the creditors by allowing it to utilize a share escrow rather than cash.