VANCOUVER, Aug. 1,
2014 /CNW/ - Sierra Metals Inc.
(TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") is pleased to
report a positive development in the Polo y Ron Minerals legal
process. A Federal Court in the State of Chihuahua has ordered that Sierra is
entitled to receive proper notice of the adverse resolution
previously issued by the State Court of Chihuahua as disclosed in
the Company's press release on March 16,
2013.
This is an important procedural step that allows
the Company to proceed with its appeal (writ of "amparo") of the
State Court's previous resolution. The adverse resolution has been
temporarily suspended since March
2013, which suspension will remain in place pending the writ
of amparo. The amparo will be heard in Federal Court and will
challenge the State Court's ruling. The Federal Court's
verdict in the amparo will be final and non-appealable.
The Company continues to vigorously defend its
position by applying the proper legal resources necessary to defend
its position. Sierra continues to believe that the original
claim is without merit.
In October 2009,
Polo y Ron Minerals, S.A. de C.V. ("P&R") sued the Company
(under the name Dia Bras Exploration Inc., the Company's previous
name) and one of its subsidiaries, Dia Bras
Mexicana, S.A. de C.V. P&R claimed 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.
In October 2011,
the 8th Civil Court of the Judicial District of Morelos in Chihuahua issued a resolution that
absolved 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,
which overruled the previous resolution and ordered the Company to:
(i) transfer to P&R 17 mining concessions from the Company's
Bolivar project, including the mining concessions where mine
operations are located; and (ii) pay US$422,674 to P&R.
The San Jose Properties are not located in any
areas where Dia Bras Mexicana, S.A.
de C.V currently operates, nor are these properties included in any
resource estimates of the Company.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company
focused on precious and base metals from its Yauricocha Mine in
Peru, its Bolivar Mine and Cusi
Mine in Mexico. 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
and the San Miguelito gold
properties in Northern Peru.
Projects in Mexico include
Bacerac (silver) in the
state of Sonora, and La Verde (gold) at the Batopilas property in the state of Chihuahua.
The Company's shares trade on the Bolsa de
Valores de Lima and the Toronto
Stock Exchange under the symbol "SMT".
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.