Sierra Metals announces update on litigation with Polo y Ron Minerals
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TSX Venture Exchange - SMT
Lima Stock Exchange - SMT
No.03 - 2013
TORONTO, Jan. 25, 2013 /CNW/ - Sierra Metals Inc. (TSXV: 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 8(th)
Civil Court of the Judicial District of Morelos in Chihuahua (the "8(th) 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 8(th) 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
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
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
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
on Sierra Metals, please visitwww.sierrametals.com or contact:
Daniel Tellechea President & CEO Sierra Metals Inc. 1 (866) 493‐9646
Matt Morrish Director, Investor Relations Sierra Metals Inc. 1 (866) 493‐9646
SOURCE: Sierra Metals Inc.
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-0- Jan/25/2013 22:38 GMT
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