Sierra Metals Reminds Shareholders of Impending Deadline to Tender Shares to Alpayana Offer
Article content
TORONTO — Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) (' Sierra Metals ' or the ' Company ') wishes to remind shareholders that, following the initial expiry time for Alpayana's (as defined herein) all-cash offer of $1.15 (the ' Offer ') per common share of the Company (' Common Shares '), Alpayana has extended the period during which shareholders of Sierra Metals may tender their Common Shares to the Offer until 5:00 p.m. (Toronto time) on May 23, 2025 (the ' Deadline '), as required by applicable Canadian securities laws.
Article content
Article content
As of the expiry of the initial deposit period for the Offer at 5:00 p.m. (Toronto time) on May 12, 2025, Alpayana announced that 152,904,401 Common Shares, representing approximately 70.7% of the issued and outstanding Common Shares, were tendered to the Offer and taken-up by Alpayana Canada Ltd., a wholly owned subsidiary of Alpayana S.A.C. (collectively ' Alpayana '). Subsequently, on May 19, 2025, Alpayana announced that an additional 34,413,923 Common Shares, representing approximately 15.9% of the issued and outstanding Common Shares, were tendered to the Offer and taken-up by Alpayana. Accordingly, Alpayana will, upon take-up of these Common Shares, own an aggregate of 187,318,324 Common Shares, representing approximately 86.7% of the issued and outstanding Common Shares.
Article content
Despite Sierra's ongoing efforts to work constructively with Alpayana toward a negotiated transaction, and an orderly transition of the Company's business, such efforts have been rebuffed by Alpayana. Among other things, the Company's Board of Directors has sought confirmation from Alpayana that it would undertake to pursue a second-step transaction to acquire 100% of Sierra Metals at the Offer price. Alpayana has refused to provide the requested confirmation, including in its news release of May 19, 2025, that it would complete a second-step transaction to acquire 100% of Sierra Metals at the Offer price.
Article content
Shareholders are cautioned that Alpayana is not required under applicable laws to pursue a second-step transaction to acquire 100% of Sierra Metals at the Offer price even if it acquires 90% or more of the issued and outstanding Common Shares under the Offer.
Article content
Shareholders who wish to tender their Common Shares to the Offer are encouraged to do so as soon as possible as there is no guarantee that Alpayana will further extend the Offer after the Deadline, nor is there any guarantee that Alpayana will pursue a second-step transaction to acquire 100% of the Common Shares at the Offer price.
Article content
If Alpayana does not pursue a second-step transaction, shareholders of Sierra who do not tender their Common Shares prior to the Deadline will remain minority shareholders of a public company under Alpayana's control. As a controlling shareholder, Alpayana has the ability to exercise control over all matters requiring approval of the shareholders of the Company, including the election of directors, determination of significant corporate actions and amendments to the Company's constating documents. In some cases, the interests of Alpayana may not be the same as the remaining public shareholders, and conflicts may arise from time to time that may be resolved in a manner detrimental to the Company's remaining public shareholders.
Article content
Additionally, Alpayana owning a significant majority of the Common Shares reduces the number of Common Shares that might otherwise trade publicly, which could materially adversely affect the liquidity and market value of any Common Shares held by the minority public shareholders who remain as shareholders of the Company following the Deadline.
Article content
Accordingly, shareholders who wish to tender their Common Shares to the Offer are encouraged to do so as soon as possible.
The Board will continue to operate the business in accordance with its fiduciary duties and remains available to engage with Alpayana on a transition plan that is in the best interest of Sierra's stakeholders.
Article content
Shareholders of Sierra Metals who have questions or require assistance in tendering their Common Shares to the Offer may contact the Depositary and Information Agent for the Offer: Shorecrest Group, at telephone at 1-888-637-5789 (North American Toll-Free Number), +1-647-931-7454 (outside North America), or by email at contact@shorecrestgroup.com.
Article content
About Sierra Metals
Article content
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 Peru and Bolivar Mine in Mexico. The Company is intent on safely increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company has large land packages at each of its mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
Article content
Forward-Looking Statements
Article content
This news 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 Metals 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 Metals to be materially different from any anticipated performance expressed or implied by such forward-looking information. Forward-looking statements in this news release include, but are not limited to, statements regarding the Offer, a potential second step transaction, the intentions of Alpayana, potential conflicts between shareholders and Alpayana, and the future market price and liquidity of the Common Shares.
Article content
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 26, 2025 for its fiscal year ended December 31, 2024 and other risks identified in the Company's filings with Canadian securities regulators, which are available at www.sedarplus.ca.
Article content
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.
Article content
Article content
Article content
Article content
For further information regarding Sierra Metals, please visit www.SierraMetals.com or contact:
Article content
Article content
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
an hour ago
- CBC
Labour dispute drags on as Canada Post rejects union's arbitration request
Canada Post has rejected a request from the union representing about 55,000 of its workers to send their ongoing labour dispute to binding arbitration. The Canadian Union of Postal Workers made the request in a statement on Saturday, saying it was inviting Canada Post to a fair, final and binding arbitration process to resolve negotiations that have dragged on for months without producing a new collective agreement. But the Crown corporation dismissed the proposal in a response on Sunday, saying it wants to "restore stability" to the postal service and arguing the union's request for binding arbitration would do the opposite. Canada Post said arbitration would be long and complicated and would likely last more than a year, adding to what it described as its significant financial challenges. The corporation presented what it called its "final offer" to the union on Wednesday, with concessions including an end to compulsory overtime and a signing bonus of up to $1,000. But it stuck to a proposal for a 14 per cent cumulative wage hike over four years and using part-time staff on weekend shifts, a major sticking point in the talks. Canada Post said the two sides are at loggerheads after months of conciliation and mediation, and it's asked Jobs Minister Patty Hajdu to force a union membership vote on its latest proposals. A statement from CUPW on Sunday evening said the forced union vote would not bring lasting labour peace — regardless of the vote's outcome. "This refusal constitutes yet another demonstration that [Canada Post] is not interested in a reasonable outcome to this round of negotiation. A forced vote may fail to end the labour conflict and risks further division, prolonging uncertainty for all parties," the statement said. The union has been in a legal strike position as of May 23, but so far it's opted to ban members from working overtime instead.
Toronto Star
an hour ago
- Toronto Star
‘Unjustified and unlawful': Canadian officials react to Trump's threat to double steel, aluminum tariffs
The federal minister tasked with Canada-U. S. trade relations said Ottawa has 'taken note' of U.S. President Donald Trump's latest threat to increase tariffs on steel and aluminum to 50 per cent, but stopped short of announcing any formal retaliatory measures, at least for now. Dominic LeBlanc, the federal minister whose portfolio includes Canada-U. S. trade, said in a statement on the social media platform X Saturday that the government will remain 'resolute in defending our workers and our communities.' 'We can give ourselves far more than the United States can take from us,' he wrote. ARTICLE CONTINUES BELOW We can give ourselves far more than the United States can take from us. That's why this Monday, the Prime Minister will meet with Premiers in Saskatoon with one goal - build one Canadian economy out of thirteen, and get big, nation-building projects built faster. (2/3) — Dominic LeBlanc (@DLeBlancNB) May 31, 2025 In a speech in Pennsylvania Friday, Trump said that the increased tariff figures would 'even further secure the steel industry in the United States.' 'Nobody's going to get around that,' Trump said. Industry minister Mélanie Joly, who formerly served as foreign minister, said that Canada is 'fighting' the 'unjustified and unlawful tariffs with our own retaliatory actions, strong domestic support packages, and big moves to diversify our trade.' President Donald Trump says he's going to double the tariff rate on steel to 50 per cent, a dramatic increase that could further push up prices for a metal used to make housing, autos and other goods. (AP Video / May 30, 2025) She added that she plans to meet with steel and aluminum producers and workers over the coming days to 'advance' a plan in response to Trump's pledge. Terry Sheehan, the Liberal MP who represents the steel-dependent riding of Sault Ste. Marie, wrote that the government will 'not back down' in the face of tariffs that 'threaten to further damage the vital relationship between our two countries.' Sault Ste. Marie's mayor, Matthew Shoemaker, said Trump is 'trying to cripple our economy.' Maninder Sidhu, the newly minted minister of international trade, wrote that the government will 'move on terms … strategically, thoughtfully, and without delay.' Sidhu, a Brampton MP first elected in 2019, said that 'trade diversification' is his 'top priority.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'Canada has what the world needs and we're ready to deliver,' Sidhu wrote. Meanwhile, United Steelworkers, which represents over 220,000 workers in Canada, said that the 50 per cent tariff would 'completely shut us out of the U.S. market' and called on the government to 'move quickly to strengthen domestic demand.' Canada Trump says he will double tariffs on steel and aluminum imports to 50 per cent In March, U.S. President Donald Trump put 25 per cent tariffs on steel and aluminum imports to 'This isn't trade policy — it's a direct attack on Canadian industries and workers,' national director Marty Warren said of the president's recent announcement. 'Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers.' The Canadian Steel Producers Association, a trade group, said in a statement that the government must immediately 'fully reinstate retaliatory steel tariffs to match the American tariffs and to implement as quickly as possible new tariffs at our own borders to stop unfairly traded steel from entering Canada.' In March, Trump put 25 per cent tariffs on steel and aluminum imports to the United States. Trump used Section 232 of the Trade Expansion Act of 1962 to impose steel and aluminum duties and said it will help bring manufacturing back to the United States. Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. About a quarter of all steel used in America is imported. Earlier this week, a three-judge panel at the U.S. Court of International Trade ruled Trump does not have the authority to wield tariffs, a pause that was subsequently lifted by a federal appeals court Thursday. A Leger poll from earlier this month found that nearly 70 per cent of Canadians are in favour of the federal government imposing dollar-for-dollar retaliatory tariffs on U.S. goods. The poll also found that Canadians are reducing the number of U.S. products they're buying in stores as a result of the ongoing trade war. With files from The Canadian Press Politics Headlines Newsletter Get the latest news and unmatched insights in your inbox every evening Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. Please enter a valid email address. Sign Up Yes, I'd also like to receive customized content suggestions and promotional messages from the Star. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy. This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Politics Headlines Newsletter You're signed up! You'll start getting Politics Headlines in your inbox soon. Want more of the latest from us? Sign up for more at our newsletter page.
Globe and Mail
2 hours ago
- Globe and Mail
Costco Stock: Can the Momentum Continue?
Costco Wholesale (NASDAQ: COST) continues to be one of the biggest winners in retail, turning in yet another strong quarter amid tariff uncertainty. Its stock also has kept its winning ways, up about 13% year to date and 235% over the past five years (as of this writing). Let's dig into the retailer's most recent results to see whether its momentum can continue. Another strong quarter Not surprisingly, tariffs were a main topic of discussion when Costco held a call with analysts to discuss its fiscal third-quarter earnings. The company said tariffs pose a significant challenge, but it feels confident in its ability to navigate the current uncertain environment. It's working on ways to mitigate the impact, including sourcing more goods locally and actively rerouting products. It said it also strategically pulled forward seasonal summer items. Costco is also working on improving the customer experience. This includes things like investing in technology to expedite the checkout process, extending gas-station hours, and opening new locations around high-volume warehouse stores to help alleviate congestion. It also recently added a "buy now, pay later" program for big-ticket items, which it says is showing initial promise. These initiatives appear to be paying off, with quarterly revenue rising 8% to $63.21 billion and adjusted earnings per share (EPS) increasing 13% to $4.28. That was ahead of the analyst consensus for EPS of $4.24 on revenue of $63.19 billion, as compiled by LSEG. Same-store sales also rose 8% when adjusting for changes in gasoline prices and foreign currency. U.S. same-store sales jumped 7.9% (adjusted), while Canadian comparable-store sales climbed 7.8% (adjusted). Other international same-store sales increased 8.5% (adjusted). E-commerce revenue increased 15.7% on an adjusted basis. Excluding gasoline and currency effects, the average transaction was up 2.7% worldwide and 2.3% in the U.S. Traffic climbed 5.2% worldwide and 5.5% in the U.S. Meat and produce performed well in the quarter, while gold and jewelry, toys, housewares, and home furnishings were all up by double-digit percentages. Membership-fee revenue climbed 10.4% in the quarter to $1.24 billion, as the company continued to benefit from the fee hike that went into effect in September. Memberships, meanwhile, rose by 6.8% to 79.6 million paid households. Higher-cost executive memberships climbed 9% to 37.6 million; these customers account for only 47% of total paid memberships, but 73% of Costco's worldwide sales. The membership renewal rate was 92.7% in North America and 90.2% worldwide. Both numbers were down slightly due to more digital signups, which have slightly lower renewal rates. The company said that a higher percentage of online signups from younger consumers has led to slightly lower renewal rates. Costco also continues to expand, opening eight new locations in the quarter. It ended the quarter with 905 warehouse stores and expects to open nine more locations this quarter. It said approximately 80% of its openings in fiscal Q4 will be in markets with high levels of traffic and they will cannibalize some existing store sales, but ease congestion. Can Costco's momentum continue? When you compare Costco's same-store sales growth to retail competitors, it's clearly winning and taking market share. Target had an awful quarter in which its comparable-store sales fell 3.8%, but even Walmart's 4.5% growth in U.S. same-store sales couldn't come close to matching Costco's 7.9% rise. Consumers just continue to flock to the value that warehouse stores provide. As Costco continues to outperform, its valuation has continued to expand. The stock now trades at a forward price-to-earnings (P/E) ratio of 57.5. Costco's stock has always had a premium valuation, but that has really ballooned in the past few years: COST PE Ratio (Forward) data by YCharts. While I think Costco is a great company, I also think it's difficult to justify such a high multiple given its revenue growth (with percentages in the low teens). It's adding new locations, but some of these will cannibalize sales at existing stores. In addition, its new-location growth is less than 3% this fiscal year, showing the maturity of the concept. That said, I also don't know what will stop the stock's momentum. A high valuation has long been a knock on the stock, but it just keeps rising. I personally wouldn't chase it here, but Costco has proved many investors wrong in the past. Should you invest $1,000 in Costco Wholesale right now? Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
