Sierra Metals Receives Non-binding Letter of Intent From Compania Minera Kolpa
October 31 2022 - 6:50AM
Business Wire
Sierra Metals Inc. (TSX: SMT) (BVL:SMT) (NYSE AMERICAN:
SMTS) (“Sierra Metals” or “the Company”) confirms that it received
an unsolicited, non-binding letter of intent (the “LOI”) following
the close of business on October 27, 2022 from Compañia Minera
Kolpa S.A. (“Kolpa”), among others.
The LOI outlines indicative terms for a proposed: (a) business
combination of Kolpa and Sierra Metals; and (b) concurrent
financing by an investment firm (collectively, the “Proposal”).
The LOI was submitted by Kolpa with its shareholders Arias
Resource Capital Fund II L.P. and Arias Resource Capital Fund II
(Mexico) L.P., among others. The LOI states that Arias Resource
Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico)
L.P. and other members of the Arias Group (and principals) hold
approximately 27% of the common shares of Sierra Metals.
As previously announced, a Special Committee of the independent
members of Sierra Metals’ Board of Directors (the “Special
Committee”) was formed with a mandate that includes exploring,
reviewing and considering financing, restructuring and strategic
options in the best interests of Sierra Metals.
The Special Committee is reviewing and considering the Proposal,
with the assistance of financial and legal advisors to the Special
Committee and to the Company. The Special Committee will consider
the benefits of the Proposal to the Company and its stakeholders
and all viable alternatives that may be or may become available to
the Company. No decisions or recommendations have been made by the
Special Committee regarding the transactions that are the subject
of the Proposal at this time and the LOI has not been executed by
the Company. Shareholders do not need to take any action with
respect to the Proposal at this time.
The Company will continue to provide appropriate disclosure of
any material developments as they arise.
About Sierra Metals
Sierra Metals is a diversified Canadian mining company with
Green Metal exposure including copper production and base metal
production with precious metals byproduct credits, focused on the
production and development of its Yauricocha Mine in Peru, and
Bolivar and Cusi Mines in Mexico. The Company is focused on
increasing production volume and growing mineral resources. The
Company also has large land packages at all three mines with
several prospective regional targets providing longer-term
exploration upside and mineral resource growth potential.
For further information regarding Sierra Metals, please visit
www.sierrametals.com or contact:
Continue to Follow, Like and Watch our progress:
Web: www.sierrametals.com | Twitter: sierrametals
| Facebook: SierraMetalsInc | LinkedIn: Sierra Metals
Inc | Instagram: sierrametals
Forward-Looking
Statements
This press release contains forward-looking information within
the meaning of Canadian and United States securities legislation,
including the course of action, if any, to be pursued in response
to the Proposal. Forward-looking information relates to future
events or the anticipated performance of Sierra Metals and reflect
management's expectations or beliefs regarding such future events
and anticipated performance based on an assumed set of economic
conditions and courses of action. In certain cases, statements that
contain forward-looking information can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"believes" or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might", or "will be taken", "occur" or "be achieved" or the
negative of these words or comparable terminology. By its very
nature forward-looking information involves known and unknown
risks, uncertainness and other factors that may cause actual
performance of Sierra Metals to be materially different from any
anticipated performance expressed or implied by such
forward-looking information. The Company has made certain
assumptions regarding, among other things, the strategic
alternatives that may be available to it. By its very nature
forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual performance
of Sierra Metals to be materially different from any anticipated
performance expressed or implied by such forward-looking
information.
Forward-looking information is subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking information, including,
without limitation, the risks described under the heading "Risk
Factors" in the Company's annual information form dated March 16,
2022 for its fiscal year ended December 31, 2021 and other risks
identified in the Company's filings with Canadian securities
regulators and the United States Securities and Exchange
Commission, which filings are available at www.sedar.com and
www.sec.gov, respectively.
The risk factors referred to above are not an exhaustive list of
the factors that may affect any of the Company's forward-looking
information. Forward-looking information includes statements about
the future and is inherently uncertain, and the Company's actual
achievements or other future events or conditions may differ
materially from those reflected in the forward-looking information
due to a variety of risks, uncertainties and other factors. The
Company's statements containing forward-looking information are
based on the beliefs, expectations, and opinions of management on
the date the statements are made, and the Company does not assume
any obligation to update such forward-looking information if
circumstances or management's beliefs, expectations or opinions
should change, other than as required by applicable law. For the
reasons set forth above, one should not place undue reliance on
forward-looking information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221031005256/en/
Investor Relations Sierra Metals Inc. Tel: +1 (416)
366-7777 Email: info@sierrametals.com
Luis Marchese CEO Sierra Metals Inc. Tel: +1 (416)
366-7777
Ed Guimaraes CFO Sierra Metals Inc. Tel: +1 (416)
366-7777
Sierra Metals (AMEX:SMTS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Sierra Metals (AMEX:SMTS)
Historical Stock Chart
From Aug 2023 to Aug 2024