Cerro de Pasco Resources Completes $15 Million Placement Deal

Cerro de Pasco Resources Completes Major Financing

Today, Cerro de Pasco Resources Inc. (CNSX: CDPR, OTC Markets: GPPRF, Frankfurt: N8HP) shared exciting news regarding its recently closed financing deal. The corporation successfully completed a $15 million brokered private placement, which attracted substantial investment interest. This significant amount will bolster the company's capacity to explore and develop its mining assets.

Details of the Private Placement

The private placement was spearheaded by SCP Resource Finance LP and involved the issuance of a total of 33,333,333 units, priced at $0.30 each. This initial offering, termed the "LIFE Offering," generated gross proceeds of $10 million. Additionally, Cerro de Pasco Resources executed a concurrent brokered private placement, resulting in a further 15,633,334 units sold, collectively raising an additional $5 million.

Understanding the Unit Structure

Each unit sold consists of one common share and one half of a share purchase warrant. Notably, these warrants possess a two-year validity, during which each can be exercised at a price of $0.50. This configuration not only enhances the attractiveness of the investment but also aligns the interests of investors and the corporation.

Plans for Proceeds Utilization

Cerro de Pasco Resources has outlined clear intentions for utilizing the proceeds from these offerings. The funds will primarily focus on exploration activities at the Quiulacocha Tailings Project and serve general corporate and operational needs. This strategic allocation will help advance the corporation's ongoing initiatives in resource management and environmental sustainability.

Impact of Eric Sprott's Investment

Adding further significance to this financing is the involvement of Eric Sprott, a renowned investor who, through 2176423 Ontario Ltd., acquired approximately $5 million worth of units. This acquisition not only demonstrates confidence in Cerro de Pasco Resources but also symbolizes a commitment to its long-term growth and success. Following the transaction, Mr. Sprott's holdings increased to around 16.6% of the total outstanding common shares.

Regulatory Framework and Shareholder Considerations

It's essential to note that the units acquired are freely tradable, reflecting favorable conditions for investors. The offerings realized by the corporation were conducted in compliance with Canadian securities laws and utilized exemptions available under the regulations.

Commitment to Responsible Investment

Mr. Sprott has pledged not to exercise his warrants in a manner that would elevate his control over the company to more than 20%. This commitment emphasizes a responsible approach to investing and shareholder balance, reflecting awareness of regulatory norms regarding share control.

Cerro de Pasco's Vision and Future Outlook

Cerro de Pasco Resources is strategically positioned to innovate within the mining sector. The corporation focuses on its core asset, the El Metalurgista mining concession in Peru. With a solid plan for reprocessing historical mining waste, Cerro de Pasco aims to contribute to environmental remediation while also tapping into an extensive resource pool that includes silver-rich tailings.

Conclusion: A Step Forward

Overall, the completion of this $15 million financing demonstrates Cerro de Pasco Resources’ stable growth trajectory and commitment to sustainable mining practices. The backing from significant investors further establishes the corporation as a competent and promising player in the mineral resources sector.

Frequently Asked Questions

What is the total amount raised by Cerro de Pasco Resources?

Cerro de Pasco Resources raised a total of $15 million through its brokered and non-brokered private placements.

Who led the financing deal for Cerro de Pasco Resources?

The financing was led by SCP Resource Finance LP, which indicates strong backing from knowledgeable investors.

How will the proceeds be utilized by the company?

The proceeds are aimed at exploring the Quiulacocha Tailings Project and facilitating general corporate operations.

What was the impact of Eric Sprott's investment?

Eric Sprott's investment of approximately $5 million illustrates confidence in Cerro de Pasco's strategies, increasing his ownership stake to about 16.6%.

What is the core asset of Cerro de Pasco Resources?

The corporation's principal asset is the El Metalurgista mining concession, which focuses on reprocessing silver-rich tailings.

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