VANCOUVER, June 21, 2013 /PRNewswire/ - 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.
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.