Cerro de Pasco Resources Inc. (TSXV: CDPR; FRA: N8HP) has adjusted the terms of its planned capital increase and filed a revised offering document. The company aims to raise gross proceeds of up to CAD 22 million to finance the next technical and environmental work steps for the feasibility phase of its Quiulacocha Tailings Project in Peru. The capital measure consists of a listed financing under the Canadian LIFE (Listed Issuer Financing Exemption) regime and a concurrent private placement.
LIFE Offering and Private Placement Totaling up to CAD 22 Million
The revised and newly filed offering document dated October 28, 2025, provides for the sale of 31.25 million units at a price of CAD 0.48 per unit. With this, Cerro de Pasco Resources aims to achieve gross proceeds of CAD 15 million through the so-called LIFE Offering. Concurrently, a non-brokered private placement of up to 14.58 million units under the same terms is planned. This is aimed at selected investors in Canada, the USA, and other international markets and could raise an additional CAD 7 million. Both financing rounds are expected to close on November 6, 2025, but are still subject to regulatory approvals.
The LIFE Offering is being managed by SCP Resource Finance LP and Raymond James Ltd. as Co-Lead Agents and Joint Bookrunners. They are acting together with a syndicate of other agents.
Structure of the Offering and Use of Proceeds
Each unit consists of one common share and one-half of a share purchase warrant. Two half warrants together constitute one full warrant, entitling the holder to acquire one additional share at a price of CAD 0.68 within 24 months. However, exercise is only possible 61 days after the closing date.
The securities issued under the LIFE Offering will be immediately tradable and are not subject to any hold period under Canadian securities law. In contrast, shares issued under the private placement are subject to a statutory hold period, depending on the respective regulations in the participating countries.
Cerro de Pasco Resources plans to use the proceeds primarily for the technical and environmental advancement of its Quiulacocha Tailings Project. The goal is to advance the project to the feasibility phase. Additionally, a portion of the proceeds will be used for general corporate purposes. The appointed agents will receive a commission of 6 percent of the gross proceeds from the LIFE financing for their services. In addition, they will receive broker warrants equal to 6 percent of the units sold, which can be exercised over two years under the same terms.
Focus on Sustainable Resource Extraction in Peru
The Quiulacocha Tailings Project, which is based on a historical tailings pond in the Cerro de Pasco mining region in Central Peru, is central to the company’s strategy. The goal is to recover valuable metals from old tailings while simultaneously reducing environmental pollution from past mining activities.
The project thus combines resource recovery with environmental modernization – an approach that is gaining increasing importance in global mining. The planned feasibility study will clarify in detail the extent to which metals such as silver, zinc, lead, and copper can be economically recovered. Cerro de Pasco Resources views the undertaking as a model project for the sustainable remediation of historical mine sites. Therefore, in addition to technical feasibility, ecological and social aspects are also central to the planning.
Conclusion: With the revised capital measure, Cerro de Pasco Resources creates the basis for the next development phase of its Quiulacocha project. The planned financing of up to CAD 22 million is intended to secure the technical and ecological implementation of the project and bring the company closer to realizing economically viable, sustainable resource recovery in Peru.
