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TORONTO, March 26, 2013 /CNW/ - Sierra Metals Inc. (TSXV:
SMT) (BVL: SMT) ("Sierra Metals" or the "Company") is pleased to
announce that its board of directors has approved a share
repurchase program (the "Share Repurchase") pursuant to a normal
course issuer bid in the open market through the facilities of the
TSX Venture Exchange (the "TSXV"). Pursuant to the Share
Repurchase, the Company proposes to repurchase for cancellation up
to 7,886,873 common shares of the Company ("Common Shares"), which
is the maximum number of Common Shares permitted to be purchased
under the applicable policies of the TSXV. Haywood Securities
Inc. will conduct the Share Repurchase on behalf of the
Company.
In connection with its implementation of the
Share Repurchase, Sierra Metals has obtained TSXV approval of its
notice of intention to make a normal course issuer bid. The notice
provides that Sierra Metals may purchase up to 7,886,873 Common
Shares through the facilities of the TSXV during the 12-month
period commencing on April 2, 2013
and ending on or before April 1,
2014.
In accordance with applicable TSXV policies,
purchases made under the Share Repurchase will not, when aggregated
with the total of all other purchases in the preceding 30 days,
exceed 2% of the total issued and outstanding Common Shares at the
time the purchases are made.
Sierra Metals will not make purchases of Common
Shares other than open-market purchases. Any Common Share purchases
made pursuant to the Share Repurchase will be at the prevailing
market price at the time of the transaction, purchased in
accordance with the policies of the TSXV and conducted by the
appointed broker. All such Common Shares will be subsequently
returned to treasury and cancelled by the Company.
Sierra Metals is adopting the Share Repurchase
because it believes that its Common Shares have been trading in a
price range which does not adequately reflect the underlying value
of such securities in relation to the Company's business and future
prospects. Accordingly, the reduction of its share capital that
will result in the cancellation of any Common Shares acquired
pursuant to the Share Repurchase will increase the proportionate
interest of all remaining shareholders 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 (the "Yauricocha Property")
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 Company's Batopilas property in the state of Chihuahua, and Las Coloradas (silver) at the Company's
Melchor Ocampo property in the
state of Zacatecas.
The Common Shares trade on the Bolsa de
Valores de Lima and the TSXV under
the symbol "SMT".
Neither the TSXV nor its Regulation Services
Provider (as such term is defined in the 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 may
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.