TORONTO, March 6, 2013 /PRNewswire/ - Sierra Metals Inc. (TSXV: SMT) (BVL: SMT) ("Sierra" or the "Company") is pleased to report that a Federal Court in the State of Chihuahua has granted to the Company a temporary suspension of the adverse resolution issued by the State Court of Chihuahua, Mexico. A final verdict by the Federal Court is pending. The Company will continue to vigorously defend this claim by applying the proper legal resources necessary to defend its position. Sierra continues to believe that the original claim is without merit.
In October 2009, Polo y Ron Minerals, S.A. de C.V. ("P&R") sued the Company and one of its subsidiaries, Dia Bras Mexicana, S.A. de C.V. P&R claimed damages for the cancelation of an option agreement (the "Option Agreement") regarding the San Jose properties in Chihuahua, Mexico (the "San Jose Properties"). The Company believes that it has complied with all of its obligations pertaining to the Option Agreement.
In October 2011, the 8 th Civil Court of the Judicial District of Morelos in Chihuahua issued a resolution that absolved the Company from the claims brought against it by P&R on the basis that P&R did not provide evidence to support any of its claims. P&R appealed this resolution to the State Court, which overruled the previous resolution and ordered the Company to: (i) transfer to P&R 17 mining concessions from the Company's Bolivar project, including the mining concessions where mine operations are located; and (ii) pay US$422,674 to P&R.
The San Jose Properties are not located in any areas where Dia Bras Mexicana, S.A. de C.V currently operates, nor are these properties included in any resource estimates of the Company.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV