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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 the Company.
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