Sierra Metals Reaches Federal Court Ruling on Litigation Pertaining to Its Bolivar Property, Mexico
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Sierra Metals Inc. has reported a positive outcome in the legal dispute between Polo & Ron Minerals (P&R) and Dia Bras Exploration Inc., (the company’s previous name) and Dia Bras Mexicana a subsidiary of Sierra Metals, that holds its Bolivar and Cusi properties in Mexico.
The Second Federal Collegiate Court on Civil and Labor Matters of the Seventeenth circuit in the State of Chihuahua (the federal court) has issued a new judgment where Magistrates José Rigoberto Dueñas Calderón, Cuauhtémoc Cuellar de Luna and Adriana Martínez Lara have unanimously ruled that the federal court has ruled that the Eighth Civil Court of the Judicial District of Morelos in Chihuahua and the Fifth Civil Hall of the Superior Court of justice of the State of Chihuahua (the state courts) lacked jurisdiction to rule on issues concerning mining title and that no previous rulings by the state courts against the company shall stand.
The federal court has ordered the cancellation of the previous resolution by the state court. The federal court’s verdict in the amparo is final and non-appealable.
In October 2009 Polo & Ron sued Dia Bras Exploration Inc., (the company’s previous name) and Dia Bras Mexicana claiming damages for the cancellation of an option agreement regarding the San Jose properties in Chihuahua, Mexico.
The San Jose Properties are not located in any areas where Dia Bras Mexicana currently operates, nor are these properties included in any resource estimates of the company.
In October 2011, the Eighth 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 company believes that it has complied with all of its obligations pertaining to the option agreements.
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metals targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora and La Verde (gold) at the Batopilas Property in the state of Chihuahua.
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