Cerro de Pasco Resources Secures $22.7 Million in Funding
Cerro de Pasco Resources Inc. (TSXV: CDPR) (OTCMKTS: GPPRF) (FRA: N8HP) is excited to announce the successful closing of a significant private placement, which has bolstered its financial standing with total gross proceeds amounting to $22,736,139.36. This funding is crucial for advancing the corporation's ambitious projects in resource recovery and environmental sustainability.
The Private Placement Details
The private placement included a brokered offering known as the LIFE Offering, which was spearheaded by esteemed financial institutions SCP Resource Finance LP and Raymond James Ltd. They were supported by notable industry players like Canaccord Genuity Corp. and CIBC World Markets Inc. In total, the LIFE Offering consisted of 31,246,207 units, priced at $0.48 each, generating gross proceeds of $14,998,179.36.
Understanding the Offering Structure
Each unit comprised one common share and a corresponding half warrant, giving investors the option to purchase additional shares in the future. With the concurrent, non-brokered placement, Cerro de Pasco Resources collected an additional $7,737,960.00 from investors. The combination of these efforts solidifies the foundation for the company as it moves forward.
Insights from the CEO
CEO Guy Goulet expressed optimism about the financial boost, stating, "With this financing, Cerro de Pasco is positioned to rapidly advance the Quiulacocha Project towards pre-construction readiness. We are committed to ensuring our technical and environmental programs set a benchmark for performance and sustainability." It’s clear that the capital acquired will be pivotal in propelling the corporation’s growth and fulfilling its sustainable mining aspirations.
Investor Participation and Engagement
Noteworthy is the participation of investor Eric Sprott, who is no stranger to Cerro de Pasco's public offerings. He contributed approximately $4,000,000 by acquiring 8,333,333 units. This ongoing investment signifies a strong vote of confidence from a key figure in resource investment.
The Long-Term Vision
Cerro de Pasco Resources is dedicated to transforming the historic Cerro de Pasco district, which is marked by over a century of mining activity, into a lead example of responsible resource development. The company aims to reprocess silver-rich tailings and mining waste, which represent substantial above-ground metal resources, and to ensure sustainable practices are at the forefront of its operations.
Proceeds Allocation and Future Plans
The funds from this offering are earmarked for advancing the technical, environmental, and engineering work necessary for the feasibility stage of the Quiulacocha Tailings Project. Cerro de Pasco is also in discussions with regulatory authorities to secure additional permits required for progressing to subsequent project phases.
Frequently Asked Questions
What is the purpose of the funds raised by Cerro de Pasco Resources?
The funds will be used to advance the Quiulacocha Project through feasibility studies and necessary engineering work.
Who were the key players in the LIFE Offering?
SCP Resource Finance LP and Raymond James Ltd. led the offering, with contributions from Canaccord Genuity Corp. and CIBC World Markets Inc.
How does this funding impact Cerro de Pasco Resources' future?
This funding strengthens the company's financial position, enabling it to pursue its strategic plans for growth and sustainability effectively.
What distinguishes Cerro de Pasco Resources in the mining sector?
The company is committed to reprocessing historic mining waste responsibly, emphasizing sustainability and long-term value creation in resource development.
Can you provide contact information for Cerro de Pasco Resources?
For further inquiries, please contact Guy Goulet, CEO, at +1-579-476-7000 or email ggoulet@pascoresources.com.
