Alpayana wishes Sierra Metals all the Best regardless of the Outcome
LIMA, Peru, April 10, 2025 /CNW/ - Alpayana S.A.C. ("Alpayana") announces that if it is unsuccessful in its previously announced Improved Offer it is prepared to let the Improved Offer expire.
Sierra Metals Inc. ("Sierra") announced yesterday that its Board unanimously recommends that Sierra Shareholders reject Alpayana's improved offer of C$1.11 (the "Improved Offer") and that BMO Capital Markets reaffirmed that in their view, the Improved Offer is inadequate. We recognize that shareholders rely on the recommendations of boards and financial advisors particularly in vulnerable situations in highly volatile environments regardless if competing offers are absent.
Alpayana reconfirms that the Improved Offer is its best and final offer and that it does not intend to make any further price increases to the Improved Offer. If the Improved Offer is not successful, Alpayana intends to let the Improved Offer expire and will focus on actionable inorganic opportunities that are currently available in this volatile global environment.
Fernando Arrieta, Alpayana's CEO, commented:
"Alpayana presented the Sierra Shareholders with the best and final Improved Offer to provide an opportunity for Sierra Shareholders to exit their investment at a significant premium in very uncertain times and despite Sierra's vulnerable situation. Regardless of the outcome, Alpayana wishes the employees and shareholders of Sierra Metals all the best."
Alpayana Canada is a Canadian wholly-owned subsidiary of Alpayana and was incorporated for the sole purpose of making the Improved Offer. Alpayana is a family-owned private mining company committed to the development and promotion of sustainable and responsible mining. It strives to leave a positive and meaningful legacy by prioritizing the wellbeing of its employees, the communities it impacts and the environment. Alpayana has been operating mines in Peru for over 38 years, has a successful M&A track record, and experience in developing projects with discipline and with a view on long-term intrinsic value. Alpayana is currently debt-free and has annual revenues over US$500 million.
Alpayana has retained LXG Capital as financial advisor and McCarthy Tetrault, Estudio Rebaza, and Creel Abogados as legal counsel to this transaction.
This news release is for informational purposes only and does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities. The Improved Offer was made solely by, and subject to the terms and conditions set out in, the formal Offer to Purchase and Circular (as amended by the Notice of Variation), letter of transmittal and notice of guaranteed delivery. The Improved Offer was not made to, nor will deposits be accepted from or on behalf of, Shareholders in any jurisdiction in which the making or acceptance of the Improved Offer would not be in compliance with the laws of such jurisdiction.
This document contains "forward-looking statements" (as defined under applicable securities laws). These statements relate to future events and reflect Alpayana Canada and Alpayana's expectations, beliefs, plans, estimates, intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements include, but are not limited to, statements regarding: Alpayana's intentions with respect to further amendments to the Improved Offer, the satisfaction or waiver of certain conditions under the Offer, and risks and challenges facing Sierra,. Such forward-looking statements reflect Alpayana Canada and Alpayana's current beliefs and are based on information currently available. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, market and general economic conditions (including slowing economic growth, inflation and rising interest rates) and the dynamic nature of the industry in which Sierra operates.
Although the forward-looking information contained in this document is based upon what Alpayana Canada and Alpayana believe are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this document are made as of the date of this document and should not be relied upon as representing views as of any date subsequent to the date of this document. Except as may be required by applicable law, Alpayana Canada and Alpayana do not undertake, and specifically disclaim, any obligation to update or revise any forward-looking information, whether as a result of new information, further developments or otherwise.
SOURCE Alpayana S.A.C.
For assistance or to ask any questions: Contact Shorecrest Group: 1-888-637-5789 (North American Toll-Free Number), 647-931-7454 (outside North America), Email: [email protected]. Or Visit: www.sierrametalscashoffer.com
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