By press time, Sierra Metals traded at C$0.84 for an intraday gain of 9.1% and a market capitalization of C$175.1 million. The stock had traded between C$0.61 and C$1.05 over the past 52 weeks.
Alpayana has been operating and developing mines in Peru for over 38 years. Recently, it has made successful bids for the Yauliyacu and Iscaycruz mines from Glencore and the Morococha mine from Pan American Silver. The firm is currently debt-free and has annual revenues of over $500 million.
‘Attractive’ offer
By making its offer directly to Sierra’s shareholders, Alpayana said they would have the opportunity to determine what is best for their investment. It believes the offer is “attractive” as this provides liquidity to shareholders of a company that has “expensive liabilities, a working capital shortfall, a large asset base subject to potential impairments.”
The Peruvian firm noted that Sierra…
