Sierra Iron Ore provides update on legal action against neighbour company

Symbol:-TSXV.NAA
Symbol:-OTC- SIOCF

VANCOUVER, Oct. 9, 2013 /CNW/ - Sierra Iron Ore Corporation (TSXV Symbol: NAA) (OTCQX: SIOCF) (the "Company") is pleased to provide an update on the legal action in conjunction with "Aztec Zinc de Mexico S.A. de C.V" against a neighboring company that owns and operates a mine on adjacent property to the Mazomique property that is located south of the El Creston property.

The legal action taken against the neighboring company has been filed in Mexico and proceedings have begun. The case is advancing through the courts and is currently in the discovery stage. As part of the discovery stage, court appointed officials, including the judge assigned to the case and a 3rd party independent geologist, visited the Mazomique property at the end of September. The purpose of the visit was to survey the property and to investigate the Company's legal claim that our neighbor acted unlawfully by crossing onto the Mazomique property. The legal action claims that the neighboring company illegally crossed the property lines and had been operating and extracting iron ore from the Mazomique property for resale into the market.

The legal action initiated by Sierra Iron Ore is intended to financially collect from the defendant the value of the iron ore that was illegally removed from the Mazomique property. Additionally, the legal action is also seeking criminal charges against the principals of the neighboring company and any other parties responsible for this alleged criminal act. The presentation of evidence is expected within the next 30 days.

On June 18, 2012, the company announced that it has entered into an agreement (the "Mazomique Agreement") with Aztec Zinc de Mexico S.A. de C.V. (the "Owner"), an arm's-length party, to acquire up to an 80% interest in a highly prospective iron ore property (the "Mazomique Property") comprising of one concession covering an area of 3,055.27 ha near the northeast boundary of Sinaloa and Chihuahua states.

"We continue to vigorously pursue a legal and financial remedy and will aggressively defend and protect the company's assets," stated Wally Boguski, President and CEO. "We look forward to advancing our case through the court system so that we can get closer to a verdict which we expect will be favorable for our company."

About Sierra Iron Ore

Sierra Iron Ore is a growth focused mineral exploration company creating value through the exploration and development of the El Creston property located in the Sinaloa State of Mexico. The company has a continual fieldwork program at the El Creston Property that is comprised of drilling, mapping, sampling and planning for further property development. Roads have been built and upgraded as well as equipment has been mobilized for further developing the known magnetite zones identified by recent exploration work.

Sierra Iron Ore also has 100% ownership of the Tom Cat property which is located 200 kilometres east-northeast of Vancouver within the historic Aspen Grove copper camp. The company is currently conducting an exploration program of geological mapping and sampling program as a prelude to a planned diamond drill program.

On behalf of The Board of Directors of Sierra Iron Ore Corporation.

Wally Boguski, Director

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Sierra Iron Ore Corp. which may cause actual results, performance or achievements of Sierra Iron Ore Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

SOURCE: Sierra Iron Ore Corporation

For further information:

For more information contact Corey Safran, Strategic Development, at 609-228-0595, or by email at corey@sierrairon.com.

Profil de l'entreprise

Sierra Iron Ore Corporation

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.