- Alpayana Canada to acquire Sierra Metals (SMT) for CDN $1.15 per share in an all-cash takeover offer.
- Sierra Metals' Board of Directors unanimously supports the offer, with a recommendation for shareholders to tender their shares by May 12, 2025.
- BMO Capital Markets asserts that the offer is financially fair to shareholders.
Sierra Metals Inc. (TSX: SMT | OTCQX: SMTSF | BVL: SMT) has announced an agreement in principle with Alpayana S.A.C. and its subsidiary Alpayana Canada Ltd. for an all-cash, board-supported takeover bid. Alpayana Canada will offer CDN $1.15 per Common Share for all shares of Sierra Metals. Both parties aim to finalize a Support Agreement by April 30, 2025.
The Board of Directors and a Special Committee of independent directors at Sierra Metals have unanimously endorsed the Supported Bid. BMO Capital Markets, Sierra Metals' financial advisor, provided an oral fairness opinion deeming the offer price fair from a financial standpoint.
Following the execution of the Support Agreement, Sierra Metals will issue an amended Directors' Circular detailing the recommendation and relevant matters. Meanwhile, Alpayana Canada has extended the offer deadline to 5:00 p.m. Toronto time on May 12, 2025, allowing Sierra Metals shareholders ample time to tender their shares.
Sierra Metals, a Canadian mining corporation with copper operations in Peru and Mexico, continues its focus on increasing production and exploring new mineral resource opportunities. Legal and financial advisors involved in the transaction include BMO Capital Markets, Mintz LLP, and LXG Capital, among others.
Alpayana, a family-owned private mining firm with over 38 years of experience in Peruvian mining, has indicated its commitment to sustainable mining practices and holds annual revenues exceeding US $500 million.
