Sierra Metals announces update on Polo y Ron Minerals option agreement
TORONTO, March 6, 2013 /PRNewswire/ – Sierra Metals Inc. (TSXV: SMT) (BVL: SMT)
(“Sierra” or the “Company”) is pleased to report that a Federal Court
in the State of Chihuahua has granted to the Company a temporary
suspension of the adverse resolution issued by the State Court of
Chihuahua, Mexico. A final verdict by the Federal Court is pending. The
Company will continue to vigorously defend this claim by applying the
proper legal resources necessary to defend its position. Sierra
continues to believe that the original claim is without merit.
In October 2009, Polo y Ron Minerals, S.A. de C.V. (“P&R”) sued the
Company and one of its subsidiaries, Dia Bras Mexicana, S.A. de C.V.
P&R claimed 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.
In October 2011, the 8(th) Civil Court of the Judicial District of Morelos in Chihuahua issued a
resolution that absolved 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, which
overruled the previous resolution and ordered the Company to: (i)
transfer to P&R 17 mining concessions from the Company’s Bolivar
project, including the mining concessions where mine operations are
located; and (ii) pay US$422,674 to P&R.
The San Jose Properties are not located in any areas where Dia Bras
Mexicana, S.A. de C.V currently operates, nor are these 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 common shares 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 that term is
defined in 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 might 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.