Sierra Metals Inc. (TSX:SMT) agreed to spin off Cautivo Mining Inc. on January 12, 2017. The distributed shares will be distributed on the basis of one distributed share for every 50 Sierra shares held on the distribution record date. As per the terms of the transaction, Sierra Metals will distribute all of the issued and outstanding common shares in the capital of Cautivo to holders of Sierra's common shares. Prior to the completion of the distribution, Sierra intends to dispose of and transfer to Cautivo all of the outstanding shares of Sierra Metals's subsidiary Plexmar Resources Inc. and the loans for proceeds of disposition in the form of additional Cautivo Shares. In a related transaction, a rights offering will be effected under which recipients of Cautivo Shares under the distribution will be entitled to purchase additional Cautivo shares. The distribution record date is July 26, 2017. Cautivo Mining will be listed as a public company at closing. Cautivo has applied to list the Cautivo Shares on the Canadian Securities Exchange (CSE) and listing will be subject to Cautivo fulfilling all of the listing requirements of the CSE. In connection with the distribution, Sierra Metals intends to effect a reduction in the stated capital of the Sierra Shares in an amount equal to the aggregate fair market value of the Cautivo shares to be distributed under the distribution. The reduction in stated capital of Sierra Metals is subject to approval of Sierra shareholders. The shareholder meeting will be held on February 16, 2017 for the purpose of considering a special resolution to approve the stated capital reduction. The completion of the distribution is conditional on at least two-thirds of the votes cast by holders of Sierra shares at the meeting being in favour of the stated capital reduction. The Board believes that the proposed distribution is in the Corporation's best interests and therefore unanimously recommends that shareholders vote in favour of the stated capital resolution. The deal has been approved by the shareholders on Sierra Metals on February 16, 2017.

Sierra Metals Inc (TSX:SMT) completed the spin off of Cautivo Mining Inc on August 8, 2017. The Cautivo shares will trade on CSE under the symbol "CAI".