Cerro de Pasco Resources Completes Non-Brokered Private Placement of $1.7 Million
CSE:CDPR
Cerro de Pasco Resources Inc. –203-22 Lafleur Av North, Saint-Sauveur, Québec, Canada J0R 1R0
Cerro de Pasco Resources Completes Non-Brokered Private Placement
of $1.7 Million
ST-SAUVEUR, QUÉBEC — (December 21, 2018) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
Cerro de Pasco Resources Inc.(CSE:CDPR) ("Cerro" or the "Corporation") is pleased to announce
the closing of a $1,650,500 non-brokered private placement(the “Offering”) of6,602,000 units
of the Corporation (“Units”) each Unit consisting of one common share (a “ Share”) and one
Share purchase warrant (each whole, a “Warrant”) at a price of $0.25 per Unit. Each Warrant
will entitle the holder to purchase one additional Share at a price of $0.40 per share for a
period of 24 months from the date of issuance provided however that the Corporation shall be
entitled to accelerate the expiry of the Warrants to the date that is 30 days followingthe date
a notice is provided to the holder in the event that the volume weighted average price of the
Shares on the Canadian Securities Exchange exceeds $0.55 per share for any twenty (20)
consecutive trading days at any time prior to the expiry of the Warrants.
The Corporation will use the net proceeds of the Offering for working capital purposes.
Any securities issued pursuant to the Offering will be subject to a hold period under applicable
securities laws which will expire four months and one day from the date of their issuance.
In connection with the Offering,Cerro paid finder’s fees to arm’s length third parties of $15,060
and issued 31,640 broker warrants, each entitling its holder to purchase one share at a price of
$0.40 per share for a period of 24 months from the date of its issuance.
Insiders of the Corporation purchased a total of 660,000 Units ($165,000). Their participation
in the Offering constitutes a “related party transaction” as defined under National Instrument
61-101 –Protection of Minority Security Holders in Special Transactions (“NI 61-101”). However,
such participation is exempt from the valuation and minority shareholder approv al
requirements of NI 61-101 based on the fact that neither the fair market value of the Offering
nor the consideration paid by such persons exceeds 25% of the Corporation’s market
capitalization. The Corporation did not file a material change report at le ast 21 days prior to
the closing of the Offering as participation of the insiders had not been established at that
time.
2019 Outlook
The management of the Corporation are continuing to advance on several fronts including
discussions with relevant parties regarding the possible integration ofParcela K into the existing
minerals package. The Peruvian government received a significant con fidence boots at the
December 9th Referendum, and is nowexpected to introduce major institutional reforms aimed
at reducing corruption and reviving foreign investment. The current political, social and
economic climate in Peru creates a positive platform from which the Corporation can execute
its vision for the fully integrated and multi -dimensional economic rehabilitation of all of the
current and legacy minerals assets within the city of Cerro de Pasco. TheCorporation continues
to advance a dialogue with leading experts on mineral waste recycling and site remediation
with the aim of achieving an ambitious “zero waste” solution and the creation of a Circular
Economy for the city of Cerro de Pasco.The Corporation has received encouraging signals from
multiple levels of the Peruvian Ministry of Energy and Mines beckoning an intensive exploration
and development phase starting in 2019.
About Cerro de Pasco Resources
Cerro de Pasco Resources is a resource management company attuned to the most demanding
environmental, social and legal compliance required by global institutions and investors. The
key strategic strength of the Corporation is an unparalleled knowledge of the challenges and
opportunities presented by the minerals endowment withinthe city ofCerro de Pascocombined
with a highly experienced and practical team of both Peruvian and international
management. The key focus of the Corporationwill be on developing the El Metalurgista mining
concession using world class geo-resource and industrial development solutions in order to
secure long-term economic operational sustainability in harmony with a healthy and prosperous
local population.
The Exchange has in no way passed upon the merits of the transactions and has neither
approved nor disapproved the contents of this news release. Neither the Exchange nor its
Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news
release.
Forward-Looking Statements and Disclaimer
Certain information contained herei n 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, “will be”, “expected” or variations of such words
and phrases or statements that certain actions, events or results “will” occur. Forward-looking
statements regarding the listing and trading of the Corporation’s common shares on the CSE
and the availability of a listing statement on the CSE’s website and on SEDAR arebased on the
Company’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
the Corporation to be materially different from those express ed or implied by such forward -
looking statements or forward -looking information. 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.
Contact Information
Cerro de Pasco Resources
Guy Goulet
President and CEO
Tel.: 579 476-7000
Email: [email protected]