Toronto, Ontario ¨C January 25th, 2013 ¨C Sierra Metals Inc. (TSX-V: SMT) (¡°Sierra Metals¡± or the ¡°Company¡±) reports that the State Court of Chihuahua, Mexico (the ¡°State Court¡±) has overturned a previously announced resolution of the 8th Civil Court of the Judicial District of Morelos in Chihuahua (the ¡°8th Civil Court¡±), which absolved the Company from the claims brought against it by Polo y Ron Minerals, S.A. de C.V. (¡°P&R¡±). The State Court has ordered the Company to: (i) transfer 17 mining concessions relating to its Bolivar project to P&R; and (ii) pay USD$422,674 to P&R.
On October 26, 2009, P&R sued the Company and one of its subsidiaries, Dia Bras Mexicana, S. A. de C. V. (¡°DBM¡±), claiming 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. On October 28, 2011, the 8th Civil Court issued a resolution absolving 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. The Company plans to mount a vigorous appeal of this ruling of the State Court.
The San Jose Properties are not located in any areas where DBM currently operates, nor are such properties included in any resource estimates 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 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 Batopilas Property in the state of Chihuahua, and Las Coloradas (silver) at the Melchor Ocampo Property in the state of Zacatecas.
The Company¡¯s shares trade on the Bolsa de Valores de Lima and TSXV under the symbol ¡°SMT¡±.
For further information on Sierra Metals, please visit www.sierrametals.com or contact:
Daniel Tellechea | | Matt Morrish |
This press release does not constitute an offer to sell or solicitation of an offer to buy the securities in the United States or any other jurisdiction. The Common Shares will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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