Cerro de Pasco Resources Announces $2.5M Offering to Advance Tailings Retreatment Project in Peru
CSE:CDPR
Cerro de Pasco Resources Announces $2.5M Offering
to Advance Tailings Retreatment Project in Peru
MONTRÉAL, CANADA — (April 7, 2021) Cerro de Pasco Resources Inc . (CSE: CDPR) (OTC Pink:
GPPRF) (Frankfurt: N8HP) (“CDPR” or the “Company”) is pleased to announce its intention to
complete a $2,500,000 non -brokered private placement offering (the “Offering”) issuing up to
7,142,857 units of the Corporation (“Units”), each Unit consisting of one common share (a
“Share”) and one -half of one Share purchase warrant (each whole, a “Warrant”), at a price of
$0.35 per Unit. Each Warrant will entitle its holder to purchase one additional Share at a price of
$0.50 per Share for a period of 24 months from the date of closing of the Offering.
The amount raised under the Offering (further defined below) will be used for general and
working capital purposes in advancing the Company’s Quiulacocha tailings retreatment Project
in Peru.
Quiulacocha Tailings – Permit to Drill
In line with process requirements, CDPR has received authorization from the Ministry of Energy
and Mines to proceed with a workshop with the local community on April 18, 2021. The date has
been officially approved by the Rural Community of Quiulacocha and preparations for the
workshop are ongoing.
CDPR will submit a completed Environmen tal Impact Statement (DIA) by the end of April 2021,
for review and approval by the Environmental branch of the Ministry (DGAAM).
The DIA provides the details and coordinates for the 40-hole Drilling Program that CDPR intends
to carry out across the Quiulacocha Tailings Storage Facility (TSF), within the boundaries of its El
Metalurgista Concession. The Quiulacocha TSF is estimated to contain approximately 70 million
tonnes of material with recoverable silver, zinc, lead, copper, gold and other strategic metals.
CDPR maintains the Social License with the Quiulacocha Rural Community, and the terms of the
surface rights contract signed in 2019 remain fully intact.
About the Tailings
The Quiulacocha TSF covers approximately 115 hectares and contains tailings deposited between
1921 and 1992. The tailings are comprised of processing residues from the Raúl Rojas open pit
and underground mine. Research indicates that tailings were first deposited on the eastern side
of the TSF from January 1921 and were derived from processing of high-grade Cu-Ag-Au ore, with
reported historical head grades of up to 10% Cu, 4 g/t Au and over 300 g/t Ag, sourced from east-
west striking veins in the underground mine. The main period of tailings deposition at
Quiulacocha came after 1943 when the Paragsha plant was put into commission, first treating Cu
ore and later processing Zn -Pb-Ag ore. According to historical records, the Cerro de Pasco mine
processed approximately 58.3 Mt of Zn-Pb-Ag ore between 1952 to 1992 from the open pit and
underground workings with average historical grades of 8.6% Zn, 3.3% Pb and 98 g/t Ag.
The Drilling Program will focus on the central and deeper section of the tailings deposit and will
be executed with sonic or other suitable drilling equipment to collec t PQ size core. Drilling will
be conducted on a 100 x 100 meter grid and will reach the base of the deposit. The intent of the
drill programme is to confirm the grades already established in the upper portion of the tailings
while also intersecting the e xpected higher-grade tailings in the deeper sections of the deposit.
The Sampling and Assaying Program will be comprised of a Quality Assurance/Quality Control
program which includes the insertion of blanks, standards, twin samples, duplicate pulps and
coarse rejects and a selection of sample pulps all of which will be sent to an independent
laboratory. After completing the Sampling and Assaying Program and Mineralogical Studies,
composites will be generated to undertake detailed metallurgical studies.
Reprocessing the Quiulacocha tailings and storing the residue in a responsible manner in an
approved modern facility forms part of an integral solution to remediate the greater Cerro de
Pasco mining complex while restoring economic activity.
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 Quali fied Person within the meaning of Canadian Securities
Administrator’s National Instrument 43-101 (“NI 43-101”).
About the Offering
Any securities issued pursuant to the Offering will be subject to a hold period under applicable
securities laws, which will expire four months plus one day from the date of closing of the
Offering.
The Corporation has not engaged an agent to assist in completing the Offering. However, the
Corporation may pay finder’s fees in connection with certain subscriptions.
Closing of th e Offering is subject to a number of conditions, including receipt of all necessary
corporate and regulatory approvals, including approval of the Canadian Securities Exchange.
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
reprocessing of all material resources, dumps, tailings, and mining waste in the Cerro de Paco
Region in Peru. Our ambition is to secure long -term economic prosperity. Our 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. Our t eam brings first-hand experience and ideas
based on innovative solutions and a holistic approach, aiming to create numerous opportunities
in a circular economy.
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”, “estima tes”, “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 exp ressions. 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 kn own 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 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 anticip ated 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 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