Cerro de Pasco Resources Announces $3.0 million Private Placement with Eric Sprott
Cerro de Pasco Resources Announces $3.0 million
Private Placement with Eric Sprott
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
MONTRÉAL, QUÉBEC, CANADA — (September 26, 2024) Cerro de Pasco Resources Inc. (CSE:
CDPR) (OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Corporation”) is pleased to announce the
closing of a non-brokered private placement of 20,000,000 units of the Corporation ("Units") at a
price of $0.15 per Unit, for total gross proceeds of $3,000,000 (the "Offering").
The Corporation is pleased to announce that Eric Sprott, through 2176423 Ontario Ltd., subscribed
for the entire Offering, thereby significantly increasing his stake in CDPR.
"We are pleased to see Eric Sprott increase his investment in Cerro de Pasco Resources. His
continued support reflects confidence in our mission and progress. This private placement
strengthens our capital structure and allows us to focus on advancing our strategi c objectives and
delivering value to our shareholders." said Guy Goulet, Chief Executive Officer.
Prior to the Offering, Mr. Sprott beneficially owned or controlled 42,387,500 Common Shares and
20,000,000 Warrants, representing approximately 9.9% of the outstanding Common Shares on a
non-diluted basis and 13.9% on a partially diluted basis assuming the exercise of such Warrants. As
a result of the Offering, Mr. Sprott beneficia lly owns or controls 62,387,500 Common Shares and
30,000,000 Warrants, representing approximately 13.9% of the outstanding Common Shares on a
non-diluted basis and 19.3% on a partially diluted basis assuming the exercise of such Warrants.
The Units were acquired by Sprott for investment purposes. Mr. Sprott has a long -term view of the
investment and may acquire additional securities of the Corporation including on the open market
or through private acquisitions or sell securities of the Corporation including on the open market or
through private dispositions in the future depending on market conditions, reformulation of plans
and/or other relevant factors.
A copy of the early warning report with respect to the foregoing will appear on CDPR’s profile on
SEDAR+ at www.sedarplus.ca and may also be obtained by calling Guy Goulet , CEO of the
Corporation at 1-579-476-7000 or writing to 2176423 Ontario Ltd. (1106-7 King Street East, Toronto
Ontario M5C 3C5).
Each Unit consist s of one common share of the Corporation (a “Common Share”) and one half of
one Common Share purchase warrant (a “Warrant”). Each whole Warrant entitle s its holder to
purchase one Common Share at an exercise price of $0.20 per Common Share until the earlier of the
date which is 24 months after the issue date of the Warrants and, if applicable, the date specified by
the Corporation that is no less than 30 days after the Corporation disseminates a news release
providing notice that the twenty-day volume-weighted average trading price of the Common Shares
on the Canadian Securities Exchange is greater than $0.60 (the “ Trigger Event”), provided that the
Trigger Event occurs on or after four months from the issue date of the Warrants.
The net proceeds from the Offering are expected to be used for drilling , sampling, metallurgy and
general working capital purposes.
All securities issued in connection with the Offering are subject to a statutory hold period ending four
months and one day from the date of issuance, in accordance with applicable securities laws.
The participation of Eric Sprott, an insider of the Corporation, in the Offering is considered a "related
party transaction" within the meaning of Multilateral Instrument 61 -101 - Protection of Minority
Security Holders in Special Transactions ("MI 61-101"). The Corporation rel ied on the exemptions
from the formal valuation and minority shareholder approval requirements of MI 61 -101 contained
in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Offering as
neither the fair market value (as determined under MI 61 -101) of the subject matter of, nor the fair
market value of the consideration for, the transaction, exceed s 25% of the Corporation's market
capitalization (as determined under MI 61-101).
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended, (the “ U.S. Securities Act ”) or any state securities laws, and
accordingly, may not be offered or sold within the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable state securities requirements or
pursuant to exemptions the refrom. This press release does not constitute an offer to sell or a
solicitation to buy any securities in any jurisdiction.
About Cerro de Pasco Resources
Cerro de Pasco Resources is focused on the development of its principal 100% owned asset, the El
Metalurgista mining concession, comprising silver -rich mineral tailings and stockpiles extracted
over a century of operation from the Cerro de Pasco open pit mine in Central Peru. The Corporation’s
approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste
and the creation of numerous opportunities in a circular economy. The asset is one of the world’s
largest above-ground resources.
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 exp ressions. Forward-looking statements, including the expectations of CDPR’s
management regarding the intended use of proceeds 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 in formation. Such factors include, among
others, risks related to the exploration, development and mining operations; impacts of
macroeconomic developments; and any material adverse effect on the business, properties and
assets of the Corporation. , including the relevant assumptions and risks factors set out in CDPR’s
public documents, available on SEDAR+ at www.sedarplus.ca. 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. Accordingly, readers should not place undue reliance on
forward-looking statements and forward -looking information. The Corporation will not update any
forward-looking statements or forward -looking information that are incorporated by reference
herein, except as required by applicable securities laws.
Further Information
Cerro de Pasco Resources Inc.
205 – 68 Ave de la Gare
Saint-Sauveur, Québec J0R 1R0
Guy Goulet, CEO
Telephone: +1-579-476-7000
Mobile: +1-514-294-7000
Ms. Donna Yoshimatsu
Senior strategic advisor, Investor Relations
Tel. : 416 722-2456
Email : [email protected]