5 million from Eric Sprott: Cerro de Pasco Resources raises CAD 15 million in total

The Quiulacocha polymetallic tailings project in Peru, one of the country’s most important mining initiatives, could contain far more unprocessed residual metal from historical production than previously thought. At least that is what initial laboratory results recently published by  Cerro de Pasco Resources (CSE CDPR / WKN A2N7XK) from a 40-hole drill program at the project suggest. However, extensive work is still required to realize the full potential of the ambitious project, which includes the rehabilitation of the site. But Cerro de Pasco is now one step closer to financing this work!

CEO Guy Goulet’s company has announced that it has now completed a financing totaling 15 million dollars. And mining legend and mining billionaire Eric Sprott alone took up around CAD 5 million!

33,333,333 of the units at CAD 0.30 per unit – gross proceeds of CAD 10 million – were issued pursuant to the exemption for listed issuers under Part 5A of National Instrument 45-106 – Prospectus Exemptions, which means, among other things, that they are not subject to the usual four-month hold period for placements. In addition, there are 15,633,334 units from a brokered placement managed and 1,033,333 units from a non-brokered placement, the gross proceeds of which amount to CAD 5 million. Each unit consists of one common share and one-half of one warrant and each whole warrant entitles the holder to purchase one common share at a price of CAD 0.50 for 24 months.

Mining billionaire Sprott further expands stake

As part of this financing, legendary mining investor Eric Sprott has acquired 16,666,664 units, representing approximately C$5 million. This increases the percentage of Cerro de Pasco shares held by Mr. Sprott by approximately 3.4% of the outstanding common shares of the Company on a partially diluted basis, assuming the exercise of all warrants, as compared to the last mandatory disclosure in this regard.

Prior to the offering, Mr. Sprott held or controlled 64,749,500 common shares and 30,000,000 warrants of Cerro de Pasco, representing 14.7% of the shares of the Company on an undiluted basis and 20.2% on a partially diluted basis. After the latest transaction, Mr. Sprott holds 81,415,664 common shares and 38,333,331 warrants, representing 16.6% of the common shares on a non-diluted basis and 22.7% on a partially diluted basis. However, no warrants have yet been exercised to such an extent that Mr. Sprott would have exceeded the 20% mark. The shares were acquired for investment reasons.