VANCOUVER, June 21, 2013 /CNW/ - Sierra Metals Inc. (TSX-V:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to
announce its second 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 or about July 31, 2013 to the holders of the issued
and outstanding Common Shares as of the close of business on June 28,
Daniel Tellechea, President and CEO of Sierra Metals, commented: "Sierra Metals is very pleased to announce its second cash dividend
payment to shareholders of $2.5 million. With the announcement of the
Cusi Mine achieving commercial production in January of 2013, the
Company now has three mines in commercial production and continues to
increase the production profile at all operations. We are excited about
the potential that the Cusi Mine has to increase total silver
production and cash flows in the future as Sierra Metals continues to
strive towards its objective of becoming a mid-tier silver producer in
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. These strong cash
flows are the result of the acquisition of Sociedad Minera Corona S.A.
as well as improvements in production and operating efficiencies in
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 Company's board of directors 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.
The Company 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 Inc.
Sierra Metals Inc. is a Canadian mining company focused on precious and
base metals from its Yauricocha Mine in Peru, and its Bolivar and Cusi
mines 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 common shares of the Company trade on the Bolsa de Valores de Lima
and the TSX Venture Exchange (the "TSXV") under the symbol "SMT".
Neither the TSXV nor its Regulation Services Provider (as such term is
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this release.
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 may 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:
For further information on Sierra Metals, please visit www.sierrametals.com or contact:
President & CEO
Sierra Metals Inc.
1 (866) 493‐9646
Director, Investor Relations
Sierra Metals Inc.
1 (866) 493‐9646