Cerro de Pasco Announces $1M Convertible Debenture Financing & Quiulacocha Drilling Program
CSE:CDPR
Cerro de Pasco Announces $1M Convertible Debenture
Financing & Quiulacocha Drilling Program
MONTRÉAL, QUÉBEC, CANADA — (October 16, 2020) Cerro de Pasco Resources Inc. (CSE : CDPR)
(OTCMKTS: GPPRF) (Frankfurt : N8HP) (“CDPR” or the ”Company”) announces that it has completed a
convertible debenture financing of $1,000,000 (the "Debenture"). The Debenture is repayable in one year
with interest at 10% per year. The Debenture will be used for general working capital and beginning of
Quiulacocha Drilling Program.
The Loan is convertible, at the option of the lender, in to common shares of the Company, at $0.6 0 per
share, which represents a 64% premium over the closing price of the Company’s shares on October 14,
2020.
An aggregate of 1,857,143 common share purchase warrants (the “Warrants") were also issued to the
lender. Each warrant entitles the holder to acquire an additional common share at a price of $0.60 until
October 15, 2022. Any securities issued pursuant to the Loan are subject to a hold period expiring on
February 16, 2021.
Cerro de Pasco Acquisition Agreement
CDPR has agreed to extend the Acquisition Agreement of the Cerro de Pasco Mine, from Volcan Compañia
Minera S.A.A. (BVL: VOLCABC1) and its subsidiaries (collectively, “Volcan”), to October 30, 2020. The
amended agreement is expected to be executed on or be fore October 30, 2020, with closing afterward
being subject to standard closing conditions and regulatory approvals having been met.
Quiulacocha Exploration and Development
On July 7th, 2020 CDPR submitted an exploration permit application to the Peruvian Ministry of Energy &
Mines (MINEM) providing the details and coordinates for a 40-hole drilling program on its El Metalurgista
concession. The concession comprises a large part of the historical Quiulacocha Tailings Storage Facility
(“Q-TSF”), which was closed in 1992 and is understood to contain approximately 70 million tonnes of
processed tailings from silver, gold, copper, zinc and lead sulphide ores processed from the Cerro de Pasco
Mine.
In 2004, Cory Gold Mining SAC completed a program of auger sampling of the Q-TSF. A total of 268
samples were taken from 105 vertical auger holes drilled to depths ranging from 2.0 to 13.6 metres.
Samples were assayed by independent ISO-certified laboratory CIMM Peru.
A Historical Resource Estimate covering 8 to 11% of the total volume based on these samples was
calculated to be 7.3 million tonnes containing 41 g/t silver, 1.44% zinc and 0.79% lead. Historical Mineral
Estimates are historical in nature and cannot be relied upon for economic evaluations.
Historical production records of the mine are shown in the table below:
Historical Production from Cerro de Pasco Mine
Production Tonnes
(Millions)
Average Mill Head Grade
Cu (%) Pb (%) Zn (%) Ag
(g/t)
Au
(g/t)
Copper Mining Era (1906-1965) 16.369 4.0% 200 3.0
Polymetallic Mining Era (1952-1992) 58.299 3.3% 8.6% 98
Average Processing Recovery 60% 60% 75% 60% 60%
Estimated Plant Tailings /Residues Tonnes
(Millions)
Estimated Average Tailings Grade
Cu (%) Pb (%) Zn (%) Ag
(g/t)
Au
(g/t)
Copper Mining Era (1906-1965) 16.369 1.6% 80 1.2
Polymetallic Mining Era (1952-1992) 58.299 1.3% 2.2% 39
Given the grades and relatively poor historical recoveries CDPR believes that a material quantity of metal
remains to be retreated from Q -TSF. The company intends to carry out the new drilling program on the
Q-TSF as soon as the permit is awarded.
Technical Information
Shane Whitty, CGeol and V.P. of Exploration and Technical Services for CDPR, has reviewed and approved
the scientific and technical information regarding the technical information contained in this news
release. Mr. Whitty is a Qualified Person within the meaning of Canadian Securities Administrator’s
National Instrument 43-101 (“NI 43-101”).
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a resource management company, with a focus on applying the latest
technology in the production of commodity metals through the treatment and reprocessingof all material
resources, dumps, tailings, mining waste etc. at Cerro de Pasco in order to secure long -term economic
prosperity. CDPR strives to meet to the highest level of environmental, social and legal compliance. CDPR
provides extensive knowledge of Cerro de Pasco’s challenges and potential, based on first -hand
experience and a team of top experts.
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 by the use of 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 results, 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, such as Covid-19, 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 atwww.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
forward-looking statements are reasonable, undue reliance should not be placed on these statementsand
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