Royalties Inc. Reports 'Inexplicable' Amparo Filing by Capstone Gold Against 88%-Owned Subsidiary MPZ
Royalties Inc. (CSE: RI), a company focused on acquiring royalty interests, reported on December 23, 2025, that its majority-owned subsidiary, Minera Portree de Zacatecas S.A. de C.V. (“MPZ”), was served notice of a legal challenge. The most material data point driving the news is the fact that Royalties Inc. holds an 88% ownership stake in MPZ, making the subsidiary’s operational stability critical to the parent company’s valuation.
Legal Challenge Emerges from Capstone Gold
The notification, received by MPZ on December 19, 2025, indicated that Capstone Gold S.A. had filed an Amparo. An Amparo is a constitutional protection or injunction available under Mexican law, often used in the mining sector to challenge administrative decisions, permits, or, potentially, to seek an injunction against ongoing operations or claims related to concessions.
The filing was immediately characterized by Royalties Inc. as “inexplicable.” This strong language suggests that the company was either blindsided by the action or believes the legal challenge lacks substantive merit regarding MPZ’s rights or activities. The dispute, while currently only a filing, introduces a layer of legal uncertainty for the assets controlled by MPZ.
The Company reports that Minera Portree de Zacatecas S.A. de C.V. ("MPZ"), a company in which Royalties Inc. holds an 88% ownership stake, was notified on December 19, 2025 that Capstone Gold S.A. filed an Amparo.
Understanding the Entities and Market Impact
Royalties Inc. (RI), which also trades over-the-counter under the symbol ROYIF, relies heavily on the performance and stability of its underlying assets, including those held by MPZ. Given the 88% controlling interest, any significant legal encumbrance or delay affecting MPZ’s ability to operate or monetize its assets could directly impact RI’s financial guidance and stock performance.
The nature of the dispute, involving Capstone Gold S.A., suggests a conflict over specific mining rights, boundaries, or operational procedures within the Zacatecas region of Mexico, a key area for gold and silver exploration and production. While the specific grounds for the Amparo filing have not been detailed by Royalties Inc., the use of this constitutional remedy signals a serious legal maneuver by Capstone Gold.
Forward-Looking Legal Strategy
The immediate implication for Royalties Inc. is the necessity of dedicating resources to defend MPZ’s position in Mexican courts. Legal proceedings, particularly those involving Amparo filings, can be protracted, potentially leading to delays in development or exploration schedules related to MPZ’s properties.
- Timing: The notification occurred just before the end of the year, on December 19, 2025, potentially complicating the company’s year-end reporting and strategic planning.
- Control: Royalties Inc.’s 88% stake ensures it maintains control over MPZ’s legal defense strategy, but it also means RI bears the majority of the financial and operational risk associated with the litigation.
- Sector Context: Legal disputes over mining concessions are not uncommon in jurisdictions like Mexico, but the public characterization of the filing as “inexplicable” by RI sets an adversarial tone for the upcoming court battle.
Investors will be closely watching for further updates from Royalties Inc. regarding the specific claims made by Capstone Gold S.A. and the initial response filed by MPZ. The resolution of this Amparo will be a key determinant of the operational outlook for RI’s core assets moving into the first half of 2026.
