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Oct. 1, 2013 /PRNewswire/ -
Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("
Sierra Metals" or the "
Company") is pleased to announce its third quarterly cash dividend of approximately
CAD$2.5 million, or
CAD$0.016 per common share of the Company (each, a "
CommonShare"), payable on
October 31, 2013 to the holders of the issued and outstanding Common Shares as of the close of business on
October 21, 2013. The Company is also announcing that it has adopted a dividend reinvestment plan (the "
Plan"), effective immediately. Eligible shareholders may elect to participate in the Plan commencing with the third quarterly dividend announced today. Participation in the Plan is optional.
Dividend Reinvestment Plan Highlights
The Plan provides a convenient and cost-effective way for eligible shareholders to acquire additional Common Shares by reinvesting cash dividends paid on their shareholdings. A copy of the Plan is available on the Company's website at
www.sierrametals.com and under its profile on SEDAR at
Highlights of the Plan include:
Common Shares issued under the Plan from treasury may be issued at a discount not to exceed 5% of the weighted average market price of the Common Shares over the ten-day period preceding the relevant dividend payment date, as further described in the Plan. The current discount has been set at 5% and shall apply until further notice by press release; and
Brokerage commissions and administrative costs for the Common Shares issued under the Plan will be borne by the Company rather than shareholders participating in the Plan. However, participating beneficial shareholders may incur fees in respect of services provided by their respective nominees.
October 4, 2013, registered shareholders may enroll in the Plan online through the Computershare Trust Company of
Canada's (the "
Plan Agent") self-service web portal at
www.investorcentre.com, or by downloading and duly completing the enrollment form and delivering it to the Plan Agent by mail in the manner provided for in the Plan. Registered shareholders may also obtain an enrollment form by contacting the Plan Agent in any of the manners specified in the Plan or by following the instructions provided on the Company's website at
www.sierrametals.com. Beneficial shareholders should contact their financial intermediary to arrange enrollment. The enrollment deadline for participation in the Plan for the third quarterly dividend is
4:00 p.m. (Eastern Standard Time) on
October 14, 2013. Shareholders who do not complete the Plan enrollment process prior to this deadline will receive cash dividends.
Sierra Metals announced its annual cash dividend policy of approximately
CAD$10 million, or
$0.064 per Common Share, for 2013 on
February 12, 2013. The Company established a dividend policy as a result of consistent cash flows from its Peruvian operations and the transition of its Mexican operations into commercial production.
The declaration and payment of future dividends will be subject to the Company's cash requirements, as well as the satisfaction of statutory solvency tests. In addition, the board of directors of the Company will assess future years' dividend payout levels, from time to time, in light of the Company's financial performance and its current and anticipated business needs at such time.