11:14 AM EDT, 07/25/2024 (MT Newswires) -- Adventus Mining ( ADVZF ) was last seen up 17% after the company on Thursday said the a challenge to the environmental license for its El Domo-Curipamba Project has been rejected by the Ecuadorian courts.

The challenge, called a Protective Challenge, raised procedural allegations about the sufficiency of the consultation process followed by the government in issuing the permits.

No date for the appeal has been set and Adventus remains free to continue construction on the project.

Earlier this month, Silvercorp Metals ( SVM ) advised Adventus that the Protective Action was a Material Adverse Effect (MAE) which could interfere with Silvercorp's April agreement to acquire the company

Adventus has rejected Silvercorp's contention that the Protective Action is an MAE. On July 24, it advised Silvercorp that it intends to commence necessary pre-closing steps. In a response received before the Ecuadorian court's ruling, Silvercorp advised it is not willing to close until there was no longer an MAE.

Adventus believes that Silvercorp's contention is untenable following the Court's ruling.

If Silvercorp fails to close the arrangement on July 31, Adventus said it will seek remedies in the Ontario courts.

The company's shares were last seen up $0.065 to $0.44 on the TSX Venture Exchange.