Peru’s Alpayana Acquires Stake in Sierra Metals

The shares were issued through a tender offer via its subsidiary Alpayana Canada Ltd.

Alpayana offered 1.15 Canadian dollars in cash per common share, with an initial maturity date of May 12, 2025, which was subsequently extended, by provision of Canadian law, to May 23, 2025.

Alpayana purchased 187,318,324 shares, equivalent to 86.7% of the total issued common shares of Sierra Metals. Subsequently, on May 26, Alpayana announced the acquisition of an additional 15,450,178 shares, reaching 93.82% of the total common shares, becoming the majority shareholder of Sierra Metals and incorporating its affiliates and mining projects under its control.

Pursuant to Peruvian law, Alpayana will launch a tender offer in Peru to acquire the necessary shares of Sociedad Minera Corona, a subsidiary of Sierra.

Alpayana specializes in polymetallic underground mining, engaged in the extraction and processing of zinc, lead, copper, and silver concentrates. Alpayana has operated mines in Peru for over 38 years, has a successful track record in mergers and acquisitions, and has experience in the development of long-term mining projects. It currently operates the Americana, Yauliyacu, Iscaycruz, and Morococha mining units.

For its part, Sierra Metals specializes in copper production, as well as exploration for other base and precious metals, operating primarily in Peru and Mexico. Sierra Metals has a portfolio of mining projects, including Yauricocha (Peru) and Bolivar (Mexico), and seeks to increase its production volume and strengthen its portfolio of mineral resources.

Law firm Rebaza, Alcázar & De Las Casas advised Alpayana on the share purchase, with a team led by partners Felipe Boisset Tizón, Camilo Maruy, Roberto Polo, and Luis Miguel Elías, along with senior associates Rafael Lulli, Pedro Díaz, Magaly Varela, and Miguel Ludeña.

Mexican law firm Creel, García-Cuéllar, Aiza y Enriquez Abogados acted as counsel to Alpayana in Mexico, with a team led by partners Leonel Pereznieto, Luis Gerardo García, and Jean Michel Enriquez, along with associates Rebeca Díaz and Franco Rafael Guízar Iriarte.

McCarthy Tétrault LLP acted as counsel to Alpayana in Canada, with a team led by partners Samantha Pettinato and Claire Lehan, and associate Eva Bellisimo.

Sierra Metals was counseled by Mintz LLP, while Bennett Jones LLP acted as special committee counsel.