08:29 AM EST, 12/17/2024 (MT Newswires) -- Sierra Metals ( SMTSF ) said Tuesday that Alpayana's Monday announcement on its plan to launch an unsolicited all-cash takeover bid for the company is "highly opportunistic."

Sierra said Alpayana's offer of $0.85 per share "is a very low 10.4% premium" given its "high quality asset base and future growth plans."

Sierra said there can be no assurance that any offer will ultimately be made, or on what conditions such an offer might be made.

Sierra Metals ( SMTSF ) said it has not received any formal written offer from Alpayana. In fact, Sierra Metals ( SMTSF ) added it has not received any recent indication of interest from Alpayana in respect of a proposed acquisition of the company.

The board has formed a special committee of independent directors to advise on the Alpayana bid.

Sierra advised shareholders to not take action at this time on the Alpayana offer.

The company's share price jumped 10.4% on Monday to $0.85 on the TSX.