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Cerro de Pasco Resources Inc
Symbol CDPR
Shares Issued 270,161,294
Close 2021-05-03 C$ 0.42
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Cerro de Pasco closes final tranche of financing

2021-05-03 12:56 ET - News Release

Mr. Guy Goulet reports

CERRO DE PASCO RESOURCES CLOSES $3M OVERSUBSCRIBED PRIVATE PLACEMENT

Further to its news releases dated April 7, 2021, April 8, 2021, and April 27, 2021, Cerro de Pasco Resources Inc. has closed the final and oversubscribed tranche of the non-brokered private placement. In connection with the closing of the final tranche, the company issued 2,064,429 units at 35 cents per unit for gross proceeds of $722,550.

Under the different tranches of the offering, the company raised aggregate gross proceeds of $2,968,545, greater than the original $2.5-million target.

Each unit consist 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, provided, however, that 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 holders 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 warrants.

The net proceeds of the offering will be used for general working capital purposes in advancing the company's Quiulacocha tailings retreatment project in Peru. In connection with the completion of the final tranche of the offering, the company paid finders' fees of $38,587 to certain parties that assisted the company by introducing subscribers to the placement.

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

One officer of the company purchased a total of 43,000 units. The officer's participation in the offering constitutes a related party transaction, as defined under National Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. However, such participation is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101, as neither the fair market value of the offering nor the consideration paid by such person exceeds 25 per cent of the company's market capitalization. The company did not file a material change report at least 21 days prior to the closing of the offering, as the participation of an insider had not been established at that time.

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. The company's 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. Cerro de Pasco Resources' 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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