TORONTO, Dec. 11, 2018 /CNW/ - Sierra Metals
Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) ("Sierra
Metals" or "the Company") is pleased to announce that its Board of
Directors has approved a share repurchase program in the form of a
normal course issuer bid (the "NCIB") in the open market through
the facilities of the Toronto Stock Exchange (the "TSX") and
other Canadian marketplaces / alternative trading systems.
Pursuant to the NCIB, the Company proposes to repurchase for
cancellation up to 1,500,000 common shares of the Company (the
"Common Shares"), which represents approximately 0.92% of the
issued and outstanding Common Shares as at December 11, 2018. CIBC Capital Markets ("CIBC")
will conduct the NCIB on behalf of the Company.
In connection with its implementation of the NCIB, Sierra Metals
has obtained TSX approval of its notice of intention to make a
normal course issuer bid (the "Notice"). The Notice provides that
the Company may purchase up to 1,500,000 Common Shares through the
facilities of the TSX and other Canadian marketplaces / alternative
trading systems during the 12-month period commencing on
December 17, 2018 and ending on or
before December 16, 2019. Any
Common Share purchases made pursuant to the NCIB will be at the
prevailing market price at the time of the transaction, purchased
in accordance with the policies of the TSX and conducted by CIBC.
In accordance with TSX rules, any daily purchases made under the
NCIB are limited to a maximum of 4,214 Common Shares, which
represents 25% of the average daily trading volume of 16,858 Common
Shares on the TSX for the six months ended November 30, 2018. However, the Company may make
one block purchase per calendar week which exceeds the daily
repurchase restriction, up to and including the maximum annual
aggregate limit of 1,500,000 Common Shares. Once the block purchase
exception has been relied on, the Company may not make any further
purchases under the NCIB for the remainder of that calendar
day.
Decisions regarding purchases will be made by the Company and
will be based on market conditions, share price, best use of
available cash, and other factors. The Company is initiating the
NCIB with the intention of purchasing up to 1,500,000 Common
Shares; however, during the course of the NCIB, the Company may
determine to amend the number of Common Shares sought so long as
that number does not exceed the limit set out in the policies of
the TSX, being 5% of the issued and outstanding Common Shares. In
the event that the Company wishes to increase the number of Common
Shares to be purchased, it must amend its Notice and re-issue a
press release, and such amendment would be subject to TSX
approval.
Igor Gonzales commented
"Sierra Metals is adopting the NCIB because it believes that its
Common Shares have been trading in a price range which does not
adequately reflect the underlying value of such Common Shares in
relation to the Company's business and future prospects.
Accordingly, the reduction of its share capital that may result
from the cancellation of any Common Shares acquired pursuant to the
NCIB will increase the proportionate interest of all remaining
shareholders of the Company."
About Sierra Metals
Sierra Metals Inc. is a Canadian-based growing polymetallic
mining company with production from its Yauricocha Mine in
Peru, and its Bolivar and
Cusi Mines in Mexico. The Company is focused on increasing
production volume and growing mineral resources. Sierra Metals has
recently had several new key discoveries and still has many more
exciting brownfield exploration opportunities at all three Mines in
Peru and Mexico that are within close proximity to the
existing mines. Additionally, 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.
The Company's Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock
Exchange under the symbol "SMT" and on the NYSE American Exchange
under the symbol "SMTS".
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Forward-Looking Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of Canadian and
U.S. securities laws related to the Company (collectively,
"forward-looking information"). Forward-looking information
includes, but is not limited to, statements with respect to the
Company's operations, including anticipated developments in the
Company's operations in future periods, the Company's planned
exploration activities, the adequacy of the Company's financial
resources, and other events or conditions that may occur in the
future. Statements concerning mineral reserve and resource
estimates may also be considered to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if and when the properties
are developed or further developed. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives",
"potential" or variations thereof, or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be 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, risks inherent in the mining industry including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, floods, labour disruptions, explosions,
cave-ins, weather conditions and criminal activity; commodity price
fluctuations; higher operating and/or capital costs; lack of
available infrastructure; the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations; risks associated with the estimation of
mineral resources and the geology, grade and continuity of mineral
deposits and the inability to replace reserves; fluctuations in the
price of commodities used in the Company's operations; risks
related to foreign operations; changes in laws or policies, foreign
taxation, delays or the inability to obtain necessary governmental
permits; risks relating to outstanding borrowings; issues regarding
title to the Company's properties; risks related to environmental
regulation; litigation risks; risks related to uninsured hazards;
the impact of competition; volatility in the price of the Company's
securities; global financial risks; inability to attract or retain
qualified employees; potential conflicts of interest; risks related
to a controlling group of shareholders; dependence on third
parties; differences in U.S. and Canadian reporting of mineral
reserves and resources; potential dilutive transactions; foreign
currency risks; risks related to business cycles; liquidity risks;
reliance on internal control systems; credit risks, including risks
related to the Company's compliance with covenants with respect to
its BCP Facility; uncertainty of production and cost estimates for
the Yauricocha Mine, the Bolivar Mine and the Cusi Mine; and other
risks identified in the Company's filings with Canadian securities
regulators and the U.S. Securities and Exchange Commission, which
filings are available at www.sedar.com and www.sec.gov,
respectively.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking information. Forward looking
information includes statements about the future and are 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
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.
Note Regarding Reserve and Resource Estimates
All mineral reserve and resource estimates reported by the
Company were calculated in accordance with the Canadian National
Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy Classification system. These standards differ
significantly from the requirements of the U.S. Securities and
Exchange Commission ("SEC"). The differences between these
standards are discussed in our SEC filings. Mineral resources which
are not mineral reserves do not have demonstrated economic
viability.
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SOURCE Sierra Metals Inc.