Cerro de Pasco Resources Signs Agreements with Volcan and Glencore to Secure Development of Quiulacocha Tailings
CERRO DE PASCO RESOURCES SIGNS AGREEMENTS WITH VOLCAN
AND GLENCORE TO SECURE DEVELOPMENT OF QUIULACOCHA TAILINGS
MONTRÉAL, CANADA – (March 21, 2023) Cerro De Pasco Resources Inc. (“CDPR” or the “Company”) (CSE:
CDPR) (OTCMKTS: GPPRF) is pleased to announce that it has signed a Memorandum of Understanding
(“MOU”) with Volcan Compania Minera S.A.A. ("Volcan"), setting out shared objectives and a framework
for collaboration with regards to first phase of development and exploration of CDPR’s Quiulacocha Tailings
Project (“QT Project”).
In addition, the Company is pleased to announce that Glencore International AG (“Glencore”) will provide
CDPR a US$2 Million term loan to cover the costs associated with the first phase of the QT Project. This
includes geophysical studies, a 40-hole sonic drilling program, laboratory testing, minerology studies,
resource estimation and economic assessment. Funds will be disbursed in accordance with a schedule of
milestones. Repayment will occur within 12 months from the start of commercial production.
Joint Objectives
CDPR is the current 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 enforceability of these rights has been formally confirmed by the General Mining Bureau of Peruvian
Ministry of Energy and Mines.
CDPR has obtained most of the certifications and authorizations required to start exploration activities at
the Concession, including an environmental certification (“DIA”), and an agreement with the Quiulacocha
Community providing certain surface rights. Easement rights also required to conduct exploration of the
Concession are being finalized and CDPR expects to begin the first phase of the QT Project in the coming
months, coinciding with the Peruvian Andes dry season.
Volcan, through its wholly owned subsidiaries are titleholders of beneficiation concessions at Cerro de
Pasco with rights to process metallic minerals at a throughput rate of 17,500 tons per day from its Paragsha
and San-Expedito processing plants and 2,500 TPD from its Oxide s plant. These beneficiation concessions
are located nearby the Concession.
The MOU sets out a path to collaborate in phases towards meeting mutually beneficial objectives. In the
first phase, Volcan will provide required access and facilities to carry out metallurgical testing. Subsequent
phases may include a partnership to work on an effective processing solution.
CDPR is fully committed to applying the highest standards in community relations and endorses guidelines
set out by the International Organization for Standardization (ISO), in its 26000:2010 Standard that defines
Corporate Social Responsibility.
Guy Goulet, CEO of Cer ro De Pasco Resources, “The MOU with Volcan sends a strong signal to all the
Quiulacocha Tailings Project stakeholders, from national and local authorities to the local population. The
Cooperation with Volcan brings us closer to achieving our key objectives of leaving near-zero waste while
extracting additional remaining values. We are looking forward to working together with Volcan towards a
shared vision of a circular economy at Cerro de Pasco.”
Nick Popovic, Head of Zinc and Copper Concentrates Marketing at Glencore: “The Glencore loan will help
CDPR advance the exploration of QT, aiming to treat the t ailings in the future. We are pleased to support
CDPR with their important rehabilitation project in the area of Cerro de Pasco.”
Carlos Francisco Fernandez Navarro, CEO of Volcan: “The MOU with CDPR sets the foundations for a future
collaboration between CDPR’s QT material and our processing facilities, which may lead to potential
synergies between both companies. We are happy to collaborate with CDPR in their endeavors to close and
clean up a historical liability while generating value for both companies and for the surrounding
stakeholders”.
About Volcan Compania Minera
Volcan Compania Minera SAA is one of the largest producers of zinc, lead and silver in the world, pursuing
the maximization of shareholder value through operational excellence and the highest standards of
workplace safety and environmental management, contributing to the development of its personnel and
its community.
About Glencore
Glencore International AG is one the worlds largest globally diversified natural resource companies.
Through scale and diversity of their industrial and marketing business, they responsibility supply
commodities that are fundamental to the building blocks of life.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a mining and resource management company with unparalleled knowledge
of the mineral endowment in the city of Cerro de Pasco and its surroundings. Initially, the Company will
unlock the useful life o f the mine and extend the concession areas in its Santander mining operation,
applying the highest safety, environmental, social and governance standards. The key focus of the growth
for the Company is on the development of the El Metalurgista mining concession, one of the world's largest
surface mineralized resources, applying the latest techniques and innovative solutions to process tailings,
extract metals and convert the remaining waste into green hydrogen and derivatives.
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 expressions.
Forward-looking statements, including the expectations of CDPR’s management regarding the costs of the
exploration program and metallurgical testing, the anticipated benefits of the MOU, the timing of
finalization of easement rights and implementation of drilling and metallurgical tests, the realization and
timing of subsequent partnership phases, the completion of the project 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 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, inc luding 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 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