VANCOUVER, Oct. 1, 2013 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to announce its third quarterly cash dividend of
approximately CAD$2.5 million, or CAD$0.016 per common share of the
Company (each, a "Common Share"), payable on October 31, 2013 to the holders of the issued and
outstanding Common Shares as of the close of business on October 21,
2013. The Company is also announcing that it has adopted a dividend
reinvestment plan (the "Plan"), effective immediately. Eligible shareholders may elect to
participate in the Plan commencing with the third quarterly dividend
announced today. Participation in the Plan is optional.
Dividend Reinvestment Plan Highlights
The Plan provides a convenient and cost-effective way for eligible
shareholders to acquire additional Common Shares by reinvesting cash
dividends paid on their shareholdings. A copy of the Plan is available
on the Company's website at www.sierrametals.com and under its profile on SEDAR at www.sedar.com.
Highlights of the Plan include:
Common Shares issued under the Plan from treasury may be issued at a
discount not to exceed 5% of the weighted average market price of the
Common Shares over the ten-day period preceding the relevant dividend
payment date, as further described in the Plan. The current discount
has been set at 5% and shall apply until further notice by press
Brokerage commissions and administrative costs for the Common Shares
issued under the Plan will be borne by the Company rather than
shareholders participating in the Plan. However, participating
beneficial shareholders may incur fees in respect of services provided
by their respective nominees.
Beginning October 4, 2013, registered shareholders may enroll in the
Plan online through the Computershare Trust Company of Canada's (the "Plan Agent") self-service web portal at www.investorcentre.com, or by downloading and duly completing the enrollment form and
delivering it to the Plan Agent by mail in the manner provided for in
the Plan. Registered shareholders may also obtain an enrollment form by
contacting the Plan Agent in any of the manners specified in the Plan
or by following the instructions provided on the Company's website at www.sierrametals.com. Beneficial shareholders should contact their financial intermediary to
arrange enrollment. The enrollment deadline for participation in the
Plan for the third quarterly dividend is 4:00 p.m. (Eastern Standard
Time) on October 14, 2013. Shareholders who do not complete the Plan
enrollment process prior to this deadline will receive cash dividends.
Sierra Metals announced its annual cash dividend policy of approximately
CAD$10 million, or $0.064 per Common Share, for 2013 on February 12,
2013. The Company established a dividend policy as a result of
consistent cash flows from its Peruvian operations and the transition
of its Mexican operations into commercial production.
The declaration and payment of future dividends will be subject to the
Company's cash requirements, as well as the satisfaction of statutory
solvency tests. In addition, the board of directors of the Company will
assess future years' dividend payout levels, from time to time, in
light of the Company's financial performance and its current and
anticipated business needs at such time.
Sierra Metals designates this dividend to be an "eligible dividend"
pursuant to subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of
precious and base metals from its Yauricocha Mine in Peru, its Bolivar
Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring
several precious and base metal targets in Peru and Mexico. Projects in
Peru include Adrico (gold), Victoria (copper-silver) and Ipillo
(polymetallic) at the Yauricocha Property in the province of Yauyos and
the San Miguelito gold properties in Northern Peru. Projects in Mexico
include Bacerac (silver) in the state of Sonora, La Verde (gold) at the
Batopilas Property in the state of Chihuahua, and Las Coloradas
(silver) at the Melchor Ocampo Property in the state of Zacatecas.
The Company's shares trade on the Bolsa de Valores de Lima and the TSX
under the symbol "SMT".
Except for statements of historical fact contained herein, the
information in this press release may constitute "forward-looking
information" within the meaning of Canadian securities law. Other than
statements of historical fact, all statements are "forward-looking
statements", which involve various known and unknown risk and
uncertainties and other factors, including market conditions that may
affect the Company's ability to execute its current business plan and
to continue to pay a quarterly dividend. Actual results might differ
materially from results suggested in any forward-looking statements.
The Company assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ
from those reflected in the forward-looking statements unless and until
required by securities laws applicable to the Company. Additional
information identifying risks and uncertainties is contained in filings
by the Company with the Canadian securities regulators, which filings
are available at www.sedar.com.
This press release is made only as a matter of disclosure and does not
imply an offer or invitation to participate in the Plan. The Plan does
not constitute an offer in any jurisdiction in which such an offer
would not be in compliance with any applicable legislation.
SOURCE: Sierra Metals Inc.
For further information:
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
President & CEO
Sierra Metals Inc.
1 (866) 493-9646
Senior Vice President, Exploration
Sierra Metals Inc.
1 (866) 493-9646