Drills to start turning end of this month
At the end of May, Cerro de Pasco Resources (CSE CDPR / WKN A2N7XK) reaped the rewards of years of work and received access rights to the Quiulacocha large-scale tailings project from the Peruvian state. The project in the Andean town of Cerro de Pasco is considered one of the largest surface resource projects in the world, containing considerable quantities of precious and critical metals in addition to non-ferrous metals from previous mining. The opportunity to exploit these vast deposits is a truly transformative milestone for small-cap Cerro de Pasco Resources. And now, thanks in part to substantial investment from mining billionaire Eric Sprott, they have the funds to start work!
Cerro de Pasco just announced that it has raised gross proceeds of CAD 3.298 million through a private placement. The company issued 32.98 million units at CAD 0.10 per unit. One unit comprises one Cerro de Pasco Resources common share and one warrant exercisable at CAD 0.15 per unit.
Mining billionaire Sprott gets takes large chunk of the financing
By far the largest part of the financing was acquired by mining billionaire and legend Eric Sprott, who bought over 20 million Cerro de Pasco units. As if that wasn’t enough, Mr. Sprott purchased another 17 million Cerro de Pasco common shares through a share purchase agreement with an existing shareholder. As a result, Mr. Sprott now owns a total of 37,000,000 common shares and 20,000,000 warrants of the company, holding approximately 9.0% of the outstanding common shares on an undiluted basis and 13.3% on a partially diluted basis assuming exercise of the warrants! And according to Cerro de Pasco’s press release, the legendary investor views this as a long-term investment…
Cerro de Pasco plans to extract the metal still contained in the tailings of Quiulacocha while advancing environmental remediation. Originally, the tailings came from the mining of more than 16 million tonnes of copper-silver-gold mineralization with historical grades of up to 10% Cu, 4 g/t Au and over 300 g/t Ag, and later from the mining of more than 58 million tonnes of zinc-lead-silver bearing material with an average grade of 7.41% Zn, 2.77% Pb and 90.33 g/t Ag.
Only 40 short drill holes for official resource
As a first step, the company intends to carry out drilling on the tailings during the dry period in the Andes (June to November). At the same time, the conditions for extending the drilling to the entire project site, beyond the boundaries of the El Metalurgista concession, will be negotiated. The Company anticipates that 40 short drill holes will be sufficient to establish a 43-101 resource for Quiulacocha. However, the evaluation of historical mining records already gives a fairly good idea of the extent of the deposits.
Summary: Guy Goulet, CEO of Cerro de Pasco, is understandably delighted that this decisive financing round has been concluded and that Eric Sprott has been won as an investor in Cerro de Pasco Resources. With the capital now available, drilling activities on the Quiulacocha Tailings Project are to continue as early as the end of July. The aim is to create a master plan for the reprocessing of the entire Quiulacocha mining resource. The transformation of Cerro de Pasco Resources is now making real progress!
Disclaimer: GOLDINVEST Consulting GmbH publishes comments, analyses and news on https://www.goldinvest.de. This content serves exclusively the information of the readers and do not represent any kind of call to action, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they in no way replace an individual expert investment advice, it is rather promotional / journalistic publications. Readers who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. The acquisition of securities, especially with shares in the penny stock area, carries high risks, which can lead to a total loss of the invested capital. The GOLDINVEST Consulting GmbH and its authors exclude any liability for financial losses or the content guarantee for topicality, correctness, adequacy and completeness of the articles offered here expressly. Please also note our terms of use.
Pursuant to §34b WpHG (Securities Trading Act) and in accordance with Paragraph 48f (5) BörseG (Austrian Stock Exchange Act) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold shares in Cerro de Pasco Resources and therefore a conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss Cerro de Pasco Resources during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, GOLDINVEST Consulting GmbH, is trying to enter a contractual service releationship with Cerro de Pasco Resources which means that a conflict of interest exists, here, too.
