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Cerro de Pasco Resources Inc
Symbol CDPR
Shares Issued 270,161,294
Close 2021-04-26 C$ 0.34
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Cerro de Pasco closes $1.05M 2nd tranche of financing

2021-04-27 10:20 ET - News Release

Mr. Guy Goulet reports

CERRO DE PASCO RESOURCES CLOSES $1M SECOND TRANCHE OF PRIVATE PLACEMENT AND PROVIDES CORPORATE UPDATE ON QUIULACOCHA TAILINGS PROJECT

Cerro de Pasco Resources Inc. has closed a second tranche of its previously announced non-brokered private placement offering. In connection with the closing of the initial tranche, the company issued 3,022,128 units at a price of 35 cents per unit for gross proceeds of $1,057,745.

Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share at a price of 50 cents for a period of 24 months from the date of issuance. The net proceeds of the offering will be used for general working capital purposes and for the advancement of the Quiulacocha tailings retreatment project in Peru.

Corporate update on Quiulacocha tailings project

In compliance with the requirements for the formulation of an Environmental Impact Declaration (DIA) for the exploration of the Quiulacocha tailings storage facility, on April 18, 2021, Cerro de Pasco successfully held a participatory workshop with the local Quiulacocha community and authorities. The workshop was preceded by the Ministry of Energy and Mines. Due to the pandemic, the workshop was held using a virtual Internet conferencing platform, transmitted live on local radio and simultaneously streamed on the website and Facebook page of the local radio station.

Members of the general committee of the workshop as well as the president of the Quiulacocha community and the mayor of Quiulacocha expressed their interest in and support of the tailings exploration program. During the workshop Cerro de Pasco and its advisers Yaku Consultores SAC, responded to over 80 questions and comments from the Quiulacocha community, authorities and the general public. The workshop airing on Facebook was viewed over 9,500 times.

On April 19, 2021, Cerro de Pasco received the official minutes of the workshop from the environmental branch of the ministry. Now that this important milestone has been reached Cerro de Pasco is working to complete the DIA and present the document for review and approval by the Ministry of Energy and Mines towards the end of April, 2021.

The DIA provides the details and co-ordinates for the 40-hole drilling program that Cerro de Pasco intends to carry out across the Quiulacocha TSF, within the boundaries of its El Metalurgista concession. The Quiulacocha TSF is estimated to contain approximately 70 million tonnes of material with recoverable silver, zinc, lead, copper, gold and other strategic metals as described in Cerro de Pasco's press release of April 7, 2021.

Cerro de Pasco continues to maintain its social licence with the Quiulacocha community and is already in discussions to extend its surface rights agreement obtained in 2019 (See corporate press release dated Oct. 17, 2019).

About the financing

The company shall be entitled to accelerate the expiry of the warrants to the date that is 30 days following the date a notice is provided to the holder in the event that the volume weighted average price of the shares on the Canadian Securities Exchange exceeds $1 per share for any 20-consecutive trading days at any time prior to the expiry of the warrant.

In connection with the completion of the second tranche of the offering, the company paid finder's fees of $60,602.50 to certain parties who assisted the company by introducing subscribers to the placement. The company may pay additional finder's fee on subsequent tranches of the placement.

The company anticipates closing a subsequent tranche of the offering on or before April 30, 2021.

All securities issued in connection with the closing of the second tranche of the offering, and any subsequent tranches, will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

About Cerro de Pasco Resources Inc.

Cerro de Pasco Resources is a resource management company, founded in 2012 and publicly listed in 2018, with the purpose of treating and reprocessing all dumps, tailings, mining waste, and material resources in the Cerro de Pasco region in Peru. Its ambition is to restore long-term sustainability to the mining activity in the Cerro de Pasco region, in harmony with a healthy and motivated local population. Its team brings first-hand experience and ideas based on innovative solutions and a holistic approach, aiming to create numerous opportunities in a circular economy.

We seek Safe Harbor.

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