Mr. Igor Gonzales reports
SIERRA METALS ANNOUNCES AMENDMENT AND INCREASE OF CURRENT NORMAL COURSE ISSUER BID TO A 2.5 MILLION SHARE TARGET
The Toronto Stock Exchange has accepted a notice filed by the company of its intention to amend its previously announced normal course issuer bid (NCIB) to increase the number of common shares of the company which the company may repurchase for cancellation under the NCIB from 1.5 million shares, or approximately 0.92 per cent of the issued and outstanding shares as of the date of commencement of the NCIB, to 2.5 million shares, representing approximately 1.54 per cent of the company's issued and outstanding shares as of Sept. 17, 2019.
Under the NCIB, which commenced on Dec. 17, 2018, the company has repurchased and cancelled a total of 1,457,822 shares at a weighted average price of $1.9307 per share as of the date hereof.
Other than the increase to the maximum number of shares which may be purchased by the company pursuant to the NCIB, no further amendments have been made to the NCIB, and the NCIB is still set to terminate on Dec. 16, 2019. For further details regarding the NCIB, please refer to the company's prior news release dated Dec. 11, 2018.
Igor Gonzales, president and chief executive officer of Sierra Metals, commented: "The company's board of directors continues to believe that the recent market prices of the shares do not properly reflect the underlying value of such Shares. As a result, depending upon future price movements and other factors, and given the recent capital expenditure reductions, the board believes that the purchase of the shares is an appropriate use of corporate funds and is in the best interests of the company and its shareholders. Furthermore, the purchases are expected to benefit all current shareholders of the company by increasing their equity interest in the company when the repurchased shares are cancelled."
About Sierra Metals Inc.
Sierra Metals is 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 discoveries and still has additional brownfield exploration opportunities at all three mines in Peru and Mexico that are within or close proximity to the existing mines. Additionally, the company has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
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