Cerro de Pasco Resources Provides Update
Cerro de Pasco Resources Provides Update
MONTRÉAL, QUÉBEC, CANADA — (April 23 2024) Cerro de Pasco Resources Inc. (CSE:
CDPR) (OTCPK: GPPRF) (Frankfurt: N8HP) (“CDPR,” or the “Corporation”) is providing the
following update.
Easement Update
• CDPR is the titleholder of the concession located in Peru called “El Metalurgista” (the
“Concession”), which grants it the right to explore and exploit the Quiulacocha
Tailings located within its assigned area. The Mining Bureau of the Ministry of Energy
and Mines (the “MB”) has confirmed the enforceability of these rights.
• As the date hereof, CDPR has successfully completed the following steps of the legal
easement procedure: (i) Legal and technical assessment made by the MB.
(ii) Valuation report of the easement area issued by the Ministry of Housing.
(iii) Favorable technical opinion issued by the Ministry of Agriculture. (iv) Favorable
decision from the Mining Council on the continuance of the easement procedure. (v)
Complementary technical opinion from the Ministry of Housing addressing some
clarifications requested by the MB. (vi) Obtain from the MB the Directorial Resolution
that approved the draft of the Supreme Resolution that grants the easement right and
the draft of the easement agreement.
• The above means that for the easement to be formally granted, it is pending that the
Supreme Resolution be signed by the Ministers of Energy and Mines and of
Agriculture, and by the President. Currently the General Counsel of the Ministry of
Energy and Mines is reviewing the draft of the Supreme Resolution. This review is the
last step before the signing of the Supreme Resolution by the abovementioned
members of the cabinet and by the President.
• At this time we are not aware of any additional requirement that should be met
for the granting of the easement, as CDPR has fulfilled all the legal and technical
requirements set forth by Peruvian law for those purposes.
Financing
Pending the signature of the easement, $2.5M investment is being held by Lavery, de Billy,
L.L.P., acting as escrow agent (“Lavery”).
Partial Debt Settlement Agreement
The Corporation further announces the issuance of 2,000,000 common shares of the
Corporation (the “Settlement Shares ”) to Riverfort Global Opportunities PCC LTD
(“Riverfort”) at a deemed issue price of $0. 10 per Settlement Share in partial repayment of
an amount owed to Riverfort under an amended and restated investment agreement
effective as of January 31 , 2024 (the “ A&R Investment Agreement”) among Riverfort, the
Corporation and Cerro de Pasco Resources Del Perú S.A.C. The issuance of the Settlement
Shares will reduce the amount owed to Riverfort under the A&R Investment Agreement to
CAD 1,523,440.86 (the “Loan”).
Amendments of Warrants
The Corporation also announces amendments to the terms and conditions of 4,283,277
outstanding share purchase warrants (the " Warrants") that were issued pursuant to non -
brokered private placements closed between April 8, 2021, and May 27, 2021. Each Warrant
entitles the holder to purchase one Common Share at a price of $0.50 per Common Share
for a period of two years. On January 18, 2023, the term of the Warrants was extended to May
27, 2024. None of the Warrants have been exercised to date. The Corporation further
extended the expiry date of the Warrants to April 8, 2026 and reduced their exercise price
from $0.50 to $0.40, with all other terms and conditions of the Warrants remaining the same.
Issuance of Shares and Grant of Options to Consultants
On April 1, 2024, the Corporation entered into a consultancy agreement for services relating
to strategic business development activities . As part of the consideration to be paid to the
consultant, 50,000 Common Shares will be issued on a quarterly basis commencing on July
1, 2024, for a period of one year, for a total of 200,000 Common Shares. In accordance with
applicable securities laws, these Common Shares will be subject to a statutory hold period
ending four months and one day from the date of their issuance.
The Corporation also announce s the grant of an aggregate of 400,000 stock options
(the “Options”) allowing consultants to purchase Common Shares at a price of $0.15 per
Common Share for periods of three or five years from April 10, 2024. These Options were
granted to consultants in accordance with the terms of CDPR’s Stock Option Plan. The
Options will be vested in stages over a period of twelve months, with ¼ of the Options vesting
in any three-month period.
About Cerro de Pasco Resources
Cerro de Pasco Resources is a mining company, with the goal to become the next mid -tier
producer in Peru. CDPR is 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 al so focused on
mining, development and exploration of its wholly-owned 6,000-hectare Santander Mine in
the highly prospective Antamina -Yauricocha Skarn Corridor, located 215 km from Lima.
CDPR founded on clear objectives, to engender long -term economic sus tainability and
benefit for the local population, from an economic, social and health point of view.
Further Information
Guy Goulet, CEO
Telephone: +1-579-476-7000 Mobile: +1-514-294-7000
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 signature of the Supreme Resolution, 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 b y such forward -looking statements or forward -looking information.
Forward-looking statements are subject to business an d economic factors and uncertainties and
other factors that could cause actual results to differ materially from these forward -looking
statements, including the risks associated with exploration, development and mining activities; the
impact of macroeconomic events, and any material adverse effect on the business, properties and
assets of CDPR, as well as the relevant assumptions and risks factors set out in CDPR’s public
documents, available on SEDAR+ at www.sedarplus.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 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.
No securities regulatory authority has either approved or disapproved the content of this news
release.