Cerro de Pasco Resources Restructures Santander Liabilities
Cerro de Pasco Resources Restructures Santander Liabilities
Montreal, Quebec, Canada — (February 1, 2024 ) Cerro de Pasco Resources Inc. (CSE:CDPR)
(OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Company”) announces that it has implemented
measures to strengthen its consolidated balance sheet by restructuring the liabilities (the
“Restructuring Plan”) at its wholly owned subsidiary Cerro de Pasco Subsidiaria del Perú SAC ,
owner of the Santander mine (“Santander”). Santander continues to perform safe and reliable
operations on a care and maintenance basis.
As part of the Restructuring P lan, Santander has applied for a Preventive Restructuring
Proceeding before the Peruvian National Institute for the Defense of Competition and the
Protection of Intellectual Property (“INDECOPI”). Following review by INDECOPI, Santander has
qualified for, and be en granted a framework and formal space of time to reach effective
agreements with recognized creditors, to ensure long-term continuity of operations.
The Company remains optimistic about its long -term prospects as it stabilizes its business
following a significant drop in zinc price and reduced head -grades at Santander’s legacy El
Magistral deposit.
The Restructuring Plan will enable the Company’s Santander subsidiary to restructure payables
with suppliers in a controlled and orderly way and complement any potential project financing
for Santander’s higher-grade Pipe Project.
Formal next steps include a detailed audit of the creditor list by INDECOPI , following which
Santander will submit a restructuring plan. Once approved, the Preventive Restructuring
Proceeding will conclude, and the restructuring plan will take effect accordingly. Th rough this
process, the Company intends to achieve a uniform settlement.
Guy Goulet, CEO: “It is a good moment to draw the line, agree on terms and look ahead to a very
promising new beginning for Santander. Santander is uniquely located with claims across one of
the most prospective mineralized zones of Peru . The Pipe Project is shovel ready and we have
completed extensive due diligence with several prospective lenders . The Peruvian regulatory
framework provided is highly effective for all parties in circumstances such as ours and will enable
us to return to a new era of profitable operations at Santander within a reasonable timeframe.
Meanwhile, the Quiulacocha Tailings Project is also progressing well, along its own separate path.”
Convertible Debenture Extension
The Company further announces the execution of an amended and restated investment
agreement with Riverfort Global Opportunities PCC LTD., pursuant to which the parties agreed to
postpone the maturity date of the outstanding convertible debenture, in the amount of
$1,641,215.94, to July 1, 2024. Subject to the approval of the Canadian Securities Exchange, the
Company will issue 5,000,000 common share purchase warrants to Riverfort, exercisable at $0.15,
for a period of two years.
About the Company and Santander
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 the
objectives, to engender long -term economic sustainability and benefit for the local population,
from an economic, social and health point of view.
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 implementation of Santander’s restructuring
plan, 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 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.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. 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