SMTS - Sierra Metals gets merger proposal from Compania Minera Kolpa

Sierra Metals ( NYSE: SMTS ) +2.9% pre-market Monday after saying it received a non-binding letter of intent from Compañia Minera Kolpa outlining terms for a proposed merger and concurrent financing by an investment firm.

The LOI was submitted by Kolpa with its shareholders Arias Resource Capital Fund II and Arias Resource Capital Fund II (Mexico), and others, which hold ~27% of Sierra Metals ( SMTS ) common shares.

Sierra Metals ( SMTS ) said the offer is being evaluated by a special committee that had been formed to consider ways to optimize the company's operations and find potential funding after facing cash flow and liquidity problems.

The company said last week that it planned to delist from the NYSE American and Bolsa de Valores de Lima exchanges .

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