Proposes Five Nominees for Sierra Metals Board Slate to Oversee Turnaround and Restore Sierra Metals to its Former Track-Record of Prosperity and Value Creation
- Nomination comes from Sierra's largest shareholders as Sierra continues to underperform operationally, faces an unsolved financial crisis, and struggles to meet its debt obligations due to a significant drop in metals production combined with a significant increase in operating costs compared to prior years.
- Sierra's revolving suite of executives and directors have destroyed over 90% of Sierra's market capitalization over the past two years, are responsible for total negative returns of -73.68% over the last four quarters ending March 31, 2023 and have failed to deliver on two strategic review processes in two years.
- ARC's proposed nominees include former Sierra directors who were previously involved in Sierra's remarkable growth in production and profitability from 2010 until ARC representatives left the board in mid-2021, and who achieved positive total shareholder returns of 93.12% in 2020 and 188.33% cumulative (9.64% annualized) from 2010 until mid-2021 for Sierra shareholders.
- Sierra Board's poor oversight, lack of practical mining experience with Sierra's operating and exploration assets in Peru and Mexico, and an absence of meaningful ownership (less than 1% of issued and outstanding common shares of Sierra), is risking Sierra's strong asset base of critical metals that the world needs to meet its low carbon future.
- ARC holds approximately 27% of the shares of Sierra and its proposed nominees have the experience and track-record required to enhance the efficiency and production throughput of the Company, while accessing broader financing sources and strategic partners to provide medium and long-term solutions to Sierra's financial liquidity issues. They are the right people to return Sierra to the track record of success and prosperity it had prior to mid-2021.
MIAMI, May 1, 2023 /CNW/ - Arias Resource Capital announced today that they are nominating five new nominees – J. Alberto Arias, Derek White, Daniel Tellechea, Ricardo Arrarte, and Alonso Checa (collectively, the "ARC Nominees") – for election to the Board of Directors (the "Board") of Sierra Metals Inc. ("Sierra" or the "Company") (TSX: SMT) at Sierra's annual general and special meeting of shareholders currently scheduled to be held on June 28, 2023. Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. (the "Nominating Shareholders"), together with other affiliates of Arias Resource Capital and its principal (together with the Nominating Shareholders, "ARC") hold approximately 27% of the outstanding shares of Sierra. The ARC Nominees intend to act quickly to resolve Sierra's mounting losses, share price collapse and financial liquidity crisis, and to restore the Company to its previous track record of excellence and value creation prior to mid-2021.
Arias Resource Capital Proposes Five Nominees for Sierra Metals Board (newswire.ca)