Sierra Minerals Inc.

Sierra Minerals Inc.

April 03, 2009 20:32 ET

Sierra Minerals Closes Second Tranche of Equity Private Placement

TORONTO, ONTARIO--(Marketwire - April 3, 2009) -


Sierra Minerals Inc. (TSX:SIM) ("Sierra" or the "Company") is pleased to announce the closing of the second tranche of the previously announced non-brokered private placement financing through the issuance of 650,000 units priced at $0.20 per unit for total proceeds of $130,000. Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $0.30 for a period of two years. Each of the common shares and warrants are subject to a hold period of four months plus one day from the date of issuance in accordance with the policies of the Toronto Stock Exchange and applicable securities laws.

The proceeds of the offering will be used towards capital improvements required to expand production at the Cerro Colorado gold mine from 20,000 ounces per year to approximately 30,000 ounces per year and for general working capital purposes. No fees are payable in respect of this offering.

About Sierra Minerals

Sierra Minerals is a Canadian based gold production and exploration company. The Company owns and operates the Cerro Colorado Gold Mine in Sonora, Mexico. All gold production is un-hedged and the Company expects to produce approximately 25,000 to 30,000 ounces of gold in 2009. Sierra is currently completing its initial National Instrument 43-101 mineral resource estimate at Cerro Colorado which is expected to be completed by the end of Q2 2009. The Company's exploration pipeline includes an extensive regional land package which covers over 34,000 hectares in Sonora, Mexico. Further information about Sierra Minerals and the Cerro Colorado Gold Mine can be found on the Company's website at


This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts including the extent of future production from the Cerro Colorado Gold Mine. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Mexico, if any; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's other regulatory filings filed with the Canadian Securities Administrators and available at Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.

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