Sierra Metals Announces Special Meeting of Shareholders for Proposed Share Consolidation
Sierra Metals (SMTSF) announces a special meeting of shareholders on January 31, 2025, to seek approval for a share consolidation at a ratio of up to 1:20. The Board believes this consolidation will enhance share marketability and attract broader investor interest. Over the past 24 months, the company has achieved significant operational improvements, including:
- Increased Yauricocha Mine throughput to 3,600 tonnes per day (30% increase)
- Expanded Bolivar Mine capacity to 5,000 tonnes per day with plans for 50% increase
- Updated NI 43-101 compliant mineral reserves
- Divested Cusi Mine for US$2.5 million plus 2% net smelter royalty
- Refinanced long-term debt and completed equity private placement
- Strengthened leadership with new CEO, CFO, and board members
Sierra Metals (SMTSF) annuncia una riunione speciale degli azionisti il 31 gennaio 2025, per cercare l'approvazione di una consolidazione delle azioni con un rapporto fino a 1:20. Il Consiglio ritiene che questa consolidazione migliorerà la commerciabilità delle azioni e attrarrà un interesse più ampio da parte degli investitori. Negli ultimi 24 mesi, l'azienda ha ottenuto significativi miglioramenti operativi, tra cui:
- Aumento della capacità di lavorazione della Miniera Yauricocha a 3.600 tonnellate al giorno (incremento del 30%)
- Espansione della capacità della Miniera Bolivar a 5.000 tonnellate al giorno con piani per un aumento del 50%
- Aggiornamento delle riserve minerarie conformi al NI 43-101
- Disinvestimento della Miniera Cusi per 2,5 milioni di dollari più il 2% di royalty netta di fusione
- Rifinanziamento del debito a lungo termine e completamento di un collocamento privato di capitale
- Rafforzamento della leadership con un nuovo CEO, CFO e membri del consiglio
Sierra Metals (SMTSF) anuncia una reunión especial de accionistas el 31 de enero de 2025, para buscar la aprobación de una consolidación de acciones en una proporción de hasta 1:20. La Junta cree que esta consolidación mejorará la comercialización de las acciones y atraerá un mayor interés de los inversores. En los últimos 24 meses, la empresa ha logrado mejoras operativas significativas, incluyendo:
- Aumento del procesamiento de la Mina Yauricocha a 3,600 toneladas por día (incremento del 30%)
- Aumento de la capacidad de la Mina Bolivar a 5,000 toneladas por día con planes para un aumento del 50%
- Actualización de las reservas minerales conforme a NI 43-101
- Venta de la Mina Cusi por 2.5 millones de dólares más el 2% de royalty neto de fundición
- Refinanciamiento de la deuda a largo plazo y finalización de una colocación privada de capital
- Fortalecimiento del liderazgo con un nuevo CEO, CFO y miembros de la junta
시 에라 메탈스 (SMTSF)는 2025년 1월 31일 주주 총회를 개최하여 최대 1:20의 비율로 주식 통합에 대한 승인을 요청한다고 발표했습니다. 이사회는 이번 통합이 주식의 시장성을 향상시키고 더 넓은 투자자 관심을 유도할 것이라고 믿고 있습니다. 지난 24개월 동안, 회사는 다음과 같은 중요한 운영 개선을 달성하였습니다:
- 야우리코차 광산 가동량을 일일 3,600톤으로 증가시켰습니다 (30% 증가)
- 볼리바르 광산의 용량을 일일 5,000톤으로 확장하고 50% 증가 계획
- NI 43-101 준수 광상 업데이트
- 쿠시 광산을 250만 달러에 2% 순환로열티와 함께 매각
- 장기 부채 재융자 및 전환 사모주식 배치 완료
- 새로운 CEO, CFO 및 이사회 구성원으로 리더십 강화
Sierra Metals (SMTSF) annonce une assemblée générale extraordinaire des actionnaires le 31 janvier 2025, afin de demander l'approbation d'une consolidation des actions à un ratio allant jusqu'à 1:20. Le Conseil considère que cette consolidation améliorera la capacité de commercialisation des actions et attirera un intérêt plus large de la part des investisseurs. Au cours des 24 derniers mois, l'entreprise a réalisé d'importantes améliorations opérationnelles, notamment :
- Augmentation du traitement de la mine Yauricocha à 3 600 tonnes par jour (augmentation de 30%)
- Extension de la capacité de la mine Bolivar à 5 000 tonnes par jour avec un plan d'augmentation de 50%
- Mise à jour des réserves minérales conformes à la norme NI 43-101
- Cession de la mine Cusi pour 2,5 millions de dollars plus 2 % de royalties nettes
- Refinancement de la dette à long terme et finalisation d'un placement privé
- Renforcement de la direction avec un nouveau PDG, CFO et membres du conseil d'administration
Sierra Metals (SMTSF) kündigt eine außerordentliche Hauptversammlung der Aktionäre am 31. Januar 2025 an, um die Genehmigung einer Aktienkonsolidierung im Verhältnis von bis zu 1:20 zu beantragen. Der Vorstand glaubt, dass diese Konsolidierung die Handelbarkeit der Aktien verbessern und ein breiteres Investorinteresse anziehen wird. In den letzten 24 Monaten hat das Unternehmen erhebliche betriebliche Verbesserungen erzielt, darunter:
- Erhöhung der Durchsatzrate der Yauricocha-Mine auf 3.600 Tonnen pro Tag (30% Steigerung)
- Erweiterung der Kapazität der Bolivar-Mine auf 5.000 Tonnen pro Tag mit Plänen für eine 50%ige Erhöhung
- Aktualisierung der gemäß NI 43-101 konformen Mineralreserven
- Veräußering der Cusi-Mine für 2,5 Millionen US-Dollar plus 2% Nettoverschmelzungsgebühr
- Refinanzierung der langfristigen Schulden und Abschluss einer privaten Aktienplatzierung
- Stärkung der Führung mit neuem CEO, CFO und Vorstandsmitgliedern
- Yauricocha Mine achieved 30% throughput increase to 3,600 tonnes per day
- Bolivar Mine operating at full capacity with planned 50% expansion to 7,500 tonnes per day
- Successfully divested Cusi Mine for US$2.5M plus 2% royalty
- Completed balance sheet recapitalization through refinancing and equity placement
- Updated NI 43-101 shows significant reserves supporting growth
- Share price performance necessitating consideration of reverse split
- Potential share consolidation may reduce market liquidity
The purpose of the Special Meeting is to seek authorization from the Company’s shareholders to enable the Board of Directors (the “Board”) to consider a consolidation of all of the Company’s issued and outstanding common shares (“Common Shares”) at a ratio of one post‐consolidation share for up to every twenty pre‐consolidation shares (the “Consolidation”). Shareholders will be requested at the Special Meeting or any adjournment thereof, to consider and, if thought fit, pass, with or without amendment, a special resolution approving the Consolidation. Following the Special Meeting, the Board expects to exercise its discretion to implement the Consolidation on such a date and time as the Board may determine. Additional details in respect of the proposed Consolidation will be included in a management information circular which is being mailed to shareholders in compliance with applicable laws and will be available under the Company’s profile on SEDAR+ (www.sedarplus.ca).
The Board believes it is in the best interests of the Company to be in a position to complete the Consolidation to provide the Company with greater flexibility for future corporate activities, enhance the marketability of the Common Shares as an investment and lead to increased interest by a broader spectrum of potential investors, thereby increasing the Company’s ability to secure additional financing for operational and growth initiatives.
Over the past 24 months, Sierra Metals has successfully stabilized, optimized and improved its operations, resulting in a lower cost structure, increased efficiencies and profitability across the Company. During this period, the Company, among its many achievements, has safely delivered the following:
-
Yauricocha Mine: increased throughput rates to full capacity of 3,600 tonnes per day (
30% increase) which has increased metal production and lowered costs. -
Bolivar Mine: increased throughput rates to consistently produce at full capacity of 5,000 tonnes per day with plans underway to add tailing facilities to increase throughput capacity by
50% to 7,500 tonnes per day. - Growing mineral reserves and resources: provided an updated NI 43-101 compliant mineral reserve and resource estimate for Yauricocha and Bolivar which indicates both operations have significant reserves and resources that underpin the foundation for growth.
-
Divested Cusi Mine: the divesture for cash consideration of
US allows the Company to focus resources on growing its core operations, with the possibility of a steady future revenue stream in the form of a$2.5 million 2% net smelter royalty from the Cusi Mine. - Optimized balance sheet: recapitalized its balance sheet by refinancing its long-term debt facilities and completing an equity private placement with broad support from insiders and existing shareholders.
- Strengthened Leadership: to lead and execute Sierra’s growth phase, the Company has attracted a new CEO, CFO, and senior management team, and revitalized its board of directors.
Ernesto Balarezo, CEO of Sierra Metals, comments, “Over the past two years, Sierra Metals has been diligently delivering strong operating and financial results in a safe and responsible manner. Our strong financial position has us well positioned to focus on a period of organic growth at our two mines. The momentum we have generated across our business is poised to continue in 2025. As we embark on our next phase of growth, we believe the proposed share consolidation will provide an attractive entry point for potential new institutional investors and retail shareholders.”
The implementation of any Consolidation is subject to Sierra Metals receiving all required approvals, including support from shareholders at the upcoming Special Meeting, and the approval of the Toronto Stock Exchange. If the approvals required for the Consolidation are obtained and the Board decides to implement the Consolidation, the Consolidation will occur at a time determined by the Board and additional information in respect of the Consolidation will be announced by the Company.
About Sierra Metals
Sierra Metals is a Canadian mining company focused on copper production with additional base and precious metals by-product credits at its Yauricocha Mine in
For further information regarding Sierra Metals, please visit www.SierraMetals.com.
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", or "will be taken", "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 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 March 15, 2024 for its fiscal year ended December 31, 2023 and other risks identified in the Company's filings with Canadian securities regulators, which are available at www.sedarplus.ca.
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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Investor Relations
Sierra Metals Inc.
+1 (866) 721-7437
info@sierrametals.com
Source: Sierra Metals Inc.
FAQ
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