VANCOUVER,
June 21, 2013 /CNW/ - Sierra
Metals Inc. (TSX-V:SMT)(BVL:SMT) ("Sierra Metals" or the
"Company") is pleased to announce its second quarterly cash
dividend of approximately CAD$2.5
million, or CAD$0.016 per
common share of the Company (each a "Common Share"), payable on or
about July 31, 2013 to the holders of
the issued and outstanding Common Shares as of the close of
business on June 28, 2013.
Daniel Tellechea,
President and CEO of Sierra Metals, commented: "Sierra
Metals is very pleased to announce its second cash dividend payment
to shareholders of $2.5 million. With
the announcement of the Cusi Mine achieving commercial production
in January of 2013, the Company now has three mines in commercial
production and continues to increase the production profile at all
operations. We are excited about the potential that the Cusi Mine
has to increase total silver production and cash flows in the
future as Sierra Metals continues to strive towards its objective
of becoming a mid-tier silver producer in Latin America."
Sierra Metals announced its annual cash dividend
policy of approximately CAD$10
million, or $0.064 per Common
Share, for 2013 on February 12, 2013.
The Company established a dividend policy as a result of consistent
cash flows from its Peruvian operations and the transition of its
Mexican operations into commercial production. These strong cash
flows are the result of the acquisition of Sociedad Minera Corona
S.A. as well as improvements in production and operating
efficiencies in Mexico
The declaration and payment of future dividends
will be subject to the Company's cash requirements, as well as the
satisfaction of statutory solvency tests. In addition, the
Company's board of directors will assess future years' dividend
payout levels, from time to time, in light of the Company's
financial performance and its current and anticipated business
needs at such time.
The Company designates this dividend to be an "eligible
dividend" pursuant to subsection 89(14) of the Income Tax
Act (Canada) and similar
provincial and territorial legislation.
About Sierra Metals Inc.
Sierra Metals Inc. is a Canadian mining company
focused on precious and base metals from its Yauricocha Mine in
Peru, and its Bolivar and Cusi
mines 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, 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 common shares of the Company 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 such term is defined in the 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 may
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.