VANCOUVER, Aug. 1, 2014 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to report a positive development in the Polo y Ron Minerals legal process. A Federal Court in the State of Chihuahua has ordered that Sierra is entitled to receive proper notice of the adverse resolution previously issued by the State Court of Chihuahua as disclosed in the Company's press release on March 16, 2013.
This is an important procedural step that allows the Company to proceed with its appeal (writ of "amparo") of the State Court's previous resolution. The adverse resolution has been temporarily suspended since March 2013, which suspension will remain in place pending the writ of amparo. The amparo will be heard in Federal Court and will challenge the State Court's ruling. The Federal Court's verdict in the amparo will be final and non-appealable.
The Company continues to vigorously defend its position by applying the proper legal resources necessary to defend its position. Sierra continues to believe that the original claim is without merit.
In October 2009, Polo y Ron Minerals, S.A. de C.V. ("P&R") sued the Company (under the name Dia Bras Exploration Inc., the Company's previous name) and one of its subsidiaries, Dia Bras Mexicana, S.A. de C.V. P&R claimed damages for the cancelation of an option agreement (the "Option Agreement") regarding the San Jose properties in Chihuahua, Mexico (the "San Jose Properties").
The Company believes that it has complied with all of its obligations pertaining to the Option Agreement.
In October 2011, the 8th Civil Court of the Judicial District of Morelos in Chihuahua issued a resolution that absolved the Company from the claims brought against it by P&R on the basis that P&R did not provide evidence to support any of its claims. P&R appealed this resolution to the State Court, which overruled the previous resolution and ordered the Company to: (i) transfer to P&R 17 mining concessions from the Company's Bolivar project, including the mining concessions where mine operations are located; and (ii) pay US$422,674 to P&R.
The San Jose Properties are not located in any areas where Dia Bras Mexicana, S.A. de C.V currently operates, nor are these properties included in any resource estimates of the Company.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on 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, and La Verde (gold) at the Batopilas property in the state of Chihuahua.
The Company's shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange 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. 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.
SOURCE: Sierra Metals Inc.
For further information: regarding Sierra Metals, please visit www.sierrametals.com or contact: Audra Walsh, President & CEO, Sierra Metals Inc., 1 (866) 493?9646; Thomas Robyn, Senior Exploration Vice President, Sierra Metals Inc., 1 (866) 493?9646