Sierra Iron Ore Corp. Initiates Legal Action Against A Neighboring Company to the Mazomique Property

Jan 8, 2013

VANCOUVER, Jan. 8, 2013 /PRNewswire/ – SIERRA IRON ORE CORP (the “Company”) in conjunction with “Aztec Zinc de Mexico S.A. de C.V” has initiated legal action against a neighboring company that owns and operates a mine on adjacent property to the recently optioned Mazomique property that is located south of the El Creston property.

The legal action claims that the neighboring company has illegally crossed the property lines and has been operating and extracting iron ore from the Mazomique property for resale into the market. Sierra Iron ore has engaged the law firm of Sepulvedia Longoria for legal representation. The legal action initiated by Sierra Iron Ore is intended to gain a court ordered cease and desist order for any further mining operations conducted by the neighboring company on the Mazomique property. The legal action is also pursuing the injunction and seizure of any iron ore that has been stockpiled near the mining site or staged at the Port of Topolobampo. Additionally, the legal action is also seeking criminal charges against the principals of the neighboring company and any other parties responsible for this alleged criminal act.

On June 18, 2012, the company announced that it has entered into an agreement (the “Mazomique Agreement”) with Aztec Zinc de Mexico S.A. de C.V. (the “Owner”), an arm’s-length party, to acquire up to an 80% interest in a highly prospective iron ore property (the “Mazomique Property”) comprising of one concession covering an area of 3,055.27 ha near the northeast boundary of Sinaloa and Chihuahua states.

“We are vigorously pursuing all legal remedies and will aggressively defend and protect the company’s assets,” stated Wally Boguski, President and CEO. “We are working with the local court and government authorities at the local, state, and federal levels and expect full cooperation with a speedy favorable resolution to our legal claim.”

http://www.sierrairon.com/news.html