08:46 AM EST, 12/16/2024 (MT Newswires) -- Alpayana said Monday it will seek to acquire Sierra Metals ( SMTSF ) in an all-cash deal valued at $0.85 per share through its newly formed wholly-owned Canadian subsidiary.

The offer is a 26% premimum to Sierra's 30-day volume weighted average trading price, Alpayana said.

Alpayana noted that "Sierra has expensive liabilities, a working capital shortfall, a large asset base subject to potential impairments." The offer provides Sierra shareholders an opportunity to "to realize cash proceeds and certainty of value for their entire investment in an entity that has low liquidity."

Alpayana said its Canadian wholly-owned subsidiary is a family-owned private mining company that is debt free and has annual revenues over US$500 million. It is also committed developing sustainable and responsible mining, Alpayana added.