BUZZ-Canada's Primero Mining: Worst day in 6-1/2 yrs on Mexico tax claim

Thu Feb 4, 2016 2:49pm EST
 
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** Canadian gold and silver miner's shares down 27.5 pct at C$2.65, set for their worst day in 6-1/2 years

** Company's Mexican unit gets legal claim seeking to nullify the advance pricing agreement (APA) issued by tax authorities in 2012

** APA provides basis for Primero paying taxes on realized silver prices for 2010-2014; legal claim does not identify any different basis for paying taxes

** Primero says believes the legal claim is without merit and that its operations continue as usual

** Desjardins Capital Markets downgrades stock to "hold" from "buy", citing the higher tax risk; cuts PT by C$1.50 to C$4

** More than 2 mln shares traded in what is their busiest day in a year

** Up to Wednesday's close, stock had fallen nearly 20 pct in past 12 months