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TORONTO, March 26, 2013 /CNW/ - Sierra Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra Metals" or the
"Company") is pleased to announce that its board of directors has
approved a share repurchase program (the "Share Repurchase") pursuant
to a normal course issuer bid in the open market through the facilities
of the TSX Venture Exchange (the "TSXV"). Pursuant to the Share
Repurchase, the Company proposes to repurchase for cancellation up to
7,886,873 common shares of the Company ("Common Shares"), which is the
maximum number of Common Shares permitted to be purchased under the
applicable policies of the TSXV. Haywood Securities Inc. will conduct
the Share Repurchase on behalf of the Company.
In connection with its implementation of the Share Repurchase, Sierra
Metals has obtained TSXV approval of its notice of intention to make a
normal course issuer bid. The notice provides that Sierra Metals may
purchase up to 7,886,873 Common Shares through the facilities of the
TSXV during the 12-month period commencing on April 2, 2013 and ending
on or before April 1, 2014.
In accordance with applicable TSXV policies, purchases made under the
Share Repurchase will not, when aggregated with the total of all other
purchases in the preceding 30 days, exceed 2% of the total issued and
outstanding Common Shares at the time the purchases are made.
Sierra Metals will not make purchases of Common Shares other than
open-market purchases. Any Common Share purchases made pursuant to the
Share Repurchase will be at the prevailing market price at the time of
the transaction, purchased in accordance with the policies of the TSXV
and conducted by the appointed broker. All such Common Shares will be
subsequently returned to treasury and cancelled by the Company.
Sierra Metals is adopting the Share Repurchase because it believes that
its Common Shares have been trading in a price range which does not
adequately reflect the underlying value of such securities in relation
to the Company's business and future prospects. Accordingly, the
reduction of its share capital that will result in the cancellation of
any Common Shares acquired pursuant to the Share Repurchase will
increase the proportionate interest of all remaining shareholders of
About Sierra Metals
Sierra Metals is a Canadian mining company focused on precious and base
metals from its Yauricocha mine in Peru (the "Yauricocha Property") and
its Bolivar mine in Mexico. The Company is also advancing its Cusi
silver project in Mexico from advanced development into commercial
production. 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. Projects in Mexico
include Bacerac (silver) in the state of Sonora, La Verde (gold) at the
Company's Batopilas property in the state of Chihuahua, and Las
Coloradas (silver) at the Company's Melchor Ocampo property in the
state of Zacatecas.
The Common Shares trade on the Bolsa de Valores de Lima and 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