TORONTO,
March 6, 2013 /PRNewswire/ - Sierra
Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra" or the "Company") is
pleased to report that a Federal Court in the State of Chihuahua has granted to the Company
a temporary suspension of the adverse resolution issued by the
State Court of Chihuahua, Mexico.
A final verdict by the Federal Court is pending. The Company will
continue to vigorously defend this claim 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 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 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 common shares trade on the Bolsa
de Valores de Lima and the TSX
Venture Exchange (the "TSXV") under the symbol "SMT".
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.