/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE,
PUBLICATION, DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES/
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 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".
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.
Forward-Looking Statements
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.
