Sierra Metals Inc. agreed to repurchase Minera Cusi SA de CV's 3% royalty on its Cusi silver mine in Mexico for US$4 million.

The company paid US$2.5 million upon signing May 10 and will settle the remaining US$1.5 million May 10, 2021.

Sierra Metals said June 3 that the acquisition will improve operating costs as production ramps up at Cusi and the Malpaso processing plant.

The company also noted that it no longer has royalties on any of its properties except those imposed by local governments.