Comprehensive Work Program Financed
The polymetallic Quiulacocha 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. This was at least indicated by initial laboratory analyses that Cerro de Pasco Resources (CSE CDPR / WKN A2N7XK) recently published from a 40-hole drilling program on the project. However, extensive work is still needed to fully realize the potential of this ambitious project, which includes the rehabilitation of the site. Cerro de Pasco has now come a big step closer to financing these efforts!
As reported by CEO Guy Goulet, the company has now completed a financing totaling 15 million dollars. And mining legend and mine billionaire Eric Sprott alone took on around 5 million CAD!
33,333,333 of the units at 0.30 CAD per unit – gross proceeds of 10 million CAD – were issued pursuant to the listed issuer financing exemption 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 and 1,033,333 units from a non-brokered placement, with gross proceeds of 5 million CAD. Each unit consists of one common share and one-half warrant. Each whole warrant entitles the holder to purchase one common share at a price of 0.50 CAD for 24 months.
Mining Billionaire Sprott Further Increases Stake
As part of this financing, legendary mining investor Eric Sprott acquired 16,666,664 units, corresponding to approximately 5 million CAD. This increases Mr. Sprott’s ownership of Cerro de Pasco shares by about 3.4% of the company’s outstanding common shares on a partially diluted basis – assuming all warrants are exercised – compared to the last mandatory disclosure in this regard.
Prior to the recent financing, Mr. Sprott already held or controlled 64,749,500 common shares and 30,000,000 warrants of Cerro de Pasco, representing 14.7% of the company’s shares on a non-diluted basis and 20.2% on a partially diluted basis. After the recent transaction, Mr. Sprott holds 81,415,664 common shares and 38,333,331 warrants, representing 16.6% of the common shares non-diluted and 22.7% partially diluted. However, no warrants have been exercised to the extent that Mr. Sprott would have exceeded the 20% threshold. The shares were acquired for investment purposes.
