Ecuador's Constitutional Court Upholds El Domo Environmental License, Dismissing Final Challenge

Silvercorp Metals Inc. (NYSE American/TSX: SVM) has received final judicial confirmation for its El Domo mining project in Ecuador after the country's Constitutional Court unanimously dismissed the last legal challenge against the project's environmental license. The ruling concludes a year-long judicial process that progressed through multiple levels of the Ecuadorian court system, as detailed in the court documentation available at https://ibn.fm/K25Ad.

The court's decision affirms the validity of the environmental license originally issued by Ecuador's Ministry of Environment, Water, and Ecological Transition (MAATE). The judicial review confirmed that the environmental consultation process complied with both Ecuadorian national law and the standards established by the Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean. This international agreement sets rigorous standards for environmental governance and community engagement in development projects.

Significantly, the court recognized the project's strong community backing, with 98% support from the local Las Naves community. This overwhelming endorsement underscores the project's alignment with local interests and its potential to deliver substantial socio-economic benefits to the region. The El Domo Project is expected to generate significant economic opportunities, infrastructure development, and community investment programs that will benefit the local population.

The ruling removes the final legal obstacle to project advancement, providing Silvercorp Metals with regulatory certainty to move forward with development plans. For the mining industry operating in Ecuador, this decision reinforces the stability of the country's environmental licensing process and demonstrates that properly conducted consultation processes can withstand legal scrutiny. The project's compliance with both national and international standards sets a precedent for responsible resource development in the region.

For investors and stakeholders, the court's unanimous decision provides confidence in the project's regulatory standing and reduces execution risk. The resolution of this legal challenge enables Silvercorp to focus on advancing the El Domo Project toward production, potentially contributing to the company's production portfolio of silver, gold, lead, and zinc. The project's progression aligns with global demand for these metals, which are essential for various industrial applications and the transition to cleaner energy technologies.