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UNITED STATES/
TSX Venture Exchange - SMT
Lima Stock Exchange - SMT
# 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.