CDPR Signs Term Sheets for an Aggregate of US$ 20.5M to Develop its Santander Mine
CDPR Signs Term Sheets for an Aggregate of US$ 20.5M to Develop
its Santander Mine
MONTRÉAL, QUÉBEC, CANADA — (June 28, 2023) Cerro de Pasco Resources Inc. (CSE:CDPR) (OTCPK: GPPRF) (FRA:
N8HP) (“CDPR” or the “ Company”) is pleased to announce that it has signed a term sheet with Ocean Partners
UK Limited (“OPUK”), a metals trading firm and Arena Investors, LP (“ARENA”), a global asset manager, to provide
an aggregate of US$ 12.0M to US$ 15.5M, consisting of a US$ 8.0M loan facility from ARENA and a US$ 4.0M to
7.5M revolving concentrate pre-payment facility from OP UK (together the “Financing”) . In addition, the
Company has secured a USD $5.0M term sheet with a private Peruvian fund in exchange for a 10% ownership
position in CDPR’s Santander subsidiary (the “Equity Interest”). The purpose of the Financing and Equity Interest
will be to strengthen the Company’s balance sheet during the physical development stage of the Santander Pipe
Project at its Santander Mine in Peru.
Guy Goulet, CDPR’s CEO stated: "We are very pleased to enter into a transaction with OP UK and ARENA in
addition to the Equity Interest in the Santander Subsidiary. Our Santander Mine in Peru is at a turning point in its
evolution as we focus on the significantly higher-grade Santander Pipe. Capital support for completion of
development works at Santander will bring our cash cost down to US$ 0.90 per lb. of zinc, positioning us close to
the bottom quartile of the cost curve for zinc producers.”
OPUK Pre-Payment Details
OPUK and CDPR will enter commercial contracts for the supply of zinc, copper and lead concentrates that are
both committed and not committed to existing off-taker. OPUK will advance to CDPR US $ 4.0M and up to a
maximum of US$ 7.5M, against monthly deliveries of concentrate for the life of the commercial contract. Once
sufficient material has been delivered to OPUK to repay amounts outstanding plus costs, the facility may be
redrawn immediately.
CDPR upon the funding of the first drawdown will issue warrants to the OPUK for a face value of CA$ 2.5M with
an exercise price of CA$ 0.25, subject to exchange approval.
ARENA Loan Facility Details
ARENA will provide a 36-month loan facility up to US$ 8.0M, secured primarily against CDPR’s Santander Assets
and first ranking fixed and floating security over the Company’s interest in the Quiulacocha TSF, which may be
removed once the facility amount is below US$ 4.0M. The repayment period will contemplate the first 6 months
of interest only followed by 30 months of equal principal plus interest payments.
CDPR, upon obtainment of funds from the loan facility , will issue to ARENA CA$ 5.0M in face value of warrants
at an exercise price of CA$ 0.25, subject to exchange approval.
Conditions Precedent
The Financing is subject to various conditions of both OPUK and ARENA including execution of binding pre -
payment documentation and the completion of additional equity or subordinated debt of US$ 12.0M.
With respect to th e additional equity required, CDPR has already signed a US$ 5.0M term sheet with a private
Peruvian fund in exchange for a 10% ownership position in CDPR’s Santander subsidiary. The closing of the Equity
Interest in Santander will be simultaneous to the closing of the Financing.
In parallel the Company is in advanced discussions with suppliers offering subordinated financing, specifically
relating to the development of the Santander Mine. The Company will report advancements in due course.
Technical Information
Mr. Jorge Lozano, MMSAQP and Chief Operating Officer for CDPR, has reviewed and approved the scientific and
technical information contained in this news release. Mr. Lozano is a Qualified Person for the purposes of
reporting in compliance with NI 43-101.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. (CDPR) is a mining and resource management company, with the goal to become
the next mid-tier producer of base metals in Peru. CDPR is currently engaged in mining, developing and exploring
its wholly-owned 6,000 hectare Santander Mine in the highly prospec tive Antamina-Yauricocha Skarn Corridor,
located 215 km from Lima. CDPR is also focused on the development of its principal 100% owned asset, the El
Metalurgista mining concession comprising mineral tailings and stockpiles extracted from the Cerro de Pasco
open pit mine in Central Peru. The company’s approach at El Metalurgista entails the reprocessing and
environmental remediation of mining waste and the creation of numerous opportunities in a circular economy.
CDPR is founded on clear objectives, to engen der long-term economic sustainability and benefit for the local
population, from an economic, social and health point of view.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under Canadian securities
legislation. Generally, forward-looking information can be identified using forward -looking terminology such as
“plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely” or
variations of such words, or statements that certain actions, events or results “may”, “will”, “could”, “would”,
“might”, “will be taken”, “occur”, “be achieved” or other similar expressions. Forward -looking statements,
including the expectations of CDPR’s management regarding the completion of the Transaction as well as the
business and the expansion and growth of CDPR’s operations, are based on CDPR’s estimates and are subject to
known and unknown risks, uncertainties and other factors that may cause the actual resu lts, level of activity,
performance or achievements of CDPR to be materially different from those expressed or implied by such
forward-looking statements or forward-looking information. Forward-looking statements are subject to business
and economic factors and uncertainties and other factors that could cause actual results to differ materially from
these forward-looking statements, including the relevant assumptions and risks factors set out in CDPR’s public
documents, available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Although CDPR believes that the assumptions and factors used in preparing the f orward-looking
statements are reasonable, undue reliance should not be placed on these statements and forward -looking
information. Except where required by applicable law, CDPR disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Further Information
Guy Goulet, CEO
Telephone: +1-579-476-7000
Mobile: +1-514-294-7000