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Sierra Metals submits application to list on TSX, appoints new board chairman

Published: 15:10 11 Mar 2013 EDT

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Sierra Metals (CVE:SMT) (BVL:SMT) on Monday said that it has submitted an application to list on the Toronto Stock Exchange, and also announced the appointment of J. Alberto Arias as chairman of the board.

If the application is accepted by the TSX, the company will cease to be listed on the TSX Venture Exchange.

Sierra Metals also said Arias will succeed Steven Dean as chairman, while Dean will stay on as a director and a contributing member of several committees, including chairman of the newly created Corporate Strategy Committee. 

Arias has been a director since 2008, and is also the founder, president and portfolio manager of Arias Resource Capital Management - a private equity firm focused on the metals and mining sector, which is also a significant shareholder of Sierra with about a 52 per cent stake.

Previously, Arias was a managing director in the investment research department of Goldman Sachs & Co., and has been recognized five years in a row by an institutional investor magazine in Latin American metals and mining as a top-ranked analyst, Sierra said.

"We thank Mr. Dean for his contribution as chairman as he has been integral to the company's recent success as a growing mid-tier precious and base metals producer,” said Sierra president Daniel Tellechea.

“We also welcome J. Alberto Arias as the recently appointed chairman who brings an extensive amount of knowledge and experience in mining that will help the company continue to expand its operations in Peru and Mexico."

Additionally, the company has appointed John Donnelly as lead director.

Sierra noted that today's announcements follow on the heels of a new quarterly cash dividend of $2.5 million or 1.6 cents per share it unveiled last month, payable on about April 30 to the holders of its stock as of the close of business on March 31.

On the back of strong cash flows from its Yauricocha mine in Peru, it said last month that it plans to pay a total of around $10 million in cash to shareholders this year.

In addition to strong cash flow from its Peru project, the company said the new cash payout policy is also benefiting from operational improvements at the Bolivar mine and Cusi project in Mexico.

The company's board is also considering the implementation of a share buyback program under Canadian laws.

Sierra is focused on precious and base metals from its Yauricocha mine in Peru and its Bolivar mine in Mexico, and is also advancing its Cusi silver project in Mexico. It also has several exploration targets in both Peru and Mexico.

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