Sierra Metals Inc. Enters Into a Binding Agreement With Silverco Mining Corp. to Sell Its Cusi Project in Mexico
In accordance with the terms of the Agreement, the Company will sell the Property to SMC in exchange for:
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US$2,500,000 in cash consideration at closing; and -
A 2.0% net smelter royalty in respect of the
Cusi Mine granted in favour ofSierra Metals (the “Royalty”). SMC will have the right to purchase half of the Royalty (being 1.0%) at any time in exchange for a cash payment toSierra Metals ofUS$5,000,000 .
As previously announced, the non-core
Completion of the Transaction is currently expected in the second quarter of 2024. The completion of the Transaction is subject to the Company and SMC entering into a definitive agreement in respect of the Transaction and the satisfaction or waiver of all conditions thereunder and the receipt of any applicable regulatory approvals. There is no certainty that the Transaction will be completed on the terms set out in this press release or at all.
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Forward-Looking Statements
This press release contains forward-looking information within the meaning of Canadian securities legislation. Forward-looking information relates to future events or the anticipated performance of Sierra and reflect management's expectations or beliefs regarding such future events and anticipated performance based on an assumed set of economic conditions and courses of action. In certain cases, statements that contain forward looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will allow", "occur" or "be achieved" or the negative of these words or comparable terminology. By its very nature forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual performance of Sierra to be materially different from any anticipated performance expressed or implied by such forward-looking information. Forward-looking information in this press release includes, but is not limited to, statements in respect of the Transaction, including the entering into of a definitive agreement in respect of the Transaction and the proposed terms and closing thereof.
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, the risks described under the heading "Risk Factors" in the Company's annual information form dated
The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. Forward-looking information includes statements about the future and is 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 such 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.
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