09:41:24 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Sierra Metals Inc
Symbol SMT
Shares Issued 163,427,335
Close 2018-12-11 C$ 3.09
Market Cap C$ 504,990,465
Recent Sedar Documents

Sierra Metals to buy back up to 1.5 million shares

2018-12-11 17:23 ET - News Release

Mr. Igor Gonzales reports

SIERRA METALS ANNOUNCES INITIATION OF NORMAL COURSE ISSUER BID WITH 1.5 MILLION SHARE TARGET

Sierra Metals Inc. has approved a share repurchase program in the form of a normal course issuer bid (NCIB) in the open market through the facilities of the Toronto Stock Exchange (TSX) and other Canadian marketplaces/alternative trading systems. Pursuant to the NCIB, the company proposes to repurchase for cancellation up to 1.5 million common shares of the company, which represent approximately 0.92 per cent of the issued and outstanding common shares as at Dec. 11, 2018. CIBC Capital Markets 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 provides that the company may purchase up to 1.5 million common shares through the facilities of the TSX and other Canadian marketplaces/alternative trading systems during the 12-month period commencing on Dec. 17, 2018, and ending on or before Dec. 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 per cent of the average daily trading volume of 16,858 common shares on the TSX for the six months ended Nov. 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 1.5 million 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 1.5 million 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 per cent 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 reissue 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 Inc.

Sierra Metals is a Canadian-based 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.

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