A Vote of Confidence

Prominent Canadian commodity investor Eric Sprott has invested an additional 3 million CAD in Cerro de Pasco Resources Inc. (CSE: CDPR; OTCPK: GPPRF; FWB: N8HP) at a price of 0.15 CAD per unit. In early August, Sprott had already participated in a 0.10 CAD placement with 2 million CAD. Both investments were made through Sprott’s investment vehicle, 2176423 Ontario Ltd.

Prior to the offering, Sprott owned or controlled 42,387,500 common shares and 20,000,000 warrants, representing approximately 9.9% of the outstanding common shares on an undiluted basis and 13.9% on a partially diluted basis assuming the exercise of these warrants. As a result of the recent investment, Sprott now owns or controls 62,387,500 common shares and 30,000,000 warrants, representing approximately 13.9% of the outstanding common shares on an undiluted basis and 19.3% on a partially diluted basis, assuming the exercise of these warrants.

Guy Goulet, Chief Executive Officer of Cerro, commented: “We are pleased that Eric Sprott has increased his investment in Cerro de Pasco Resources. His continued support reflects confidence in our mission and progress. This private placement strengthens our capital structure and allows us to focus on implementing our strategic goals and creating value for our shareholders.”

The net proceeds from the offering are intended to be used for drilling, sampling, metallurgy, and as general working capital. Cerro de Pasco Resources is focusing on the development of the El Metalurgista mining concession, which consists of silver-rich mineral tailings and stockpiles that have been extracted from the Cerro de Pasco open pit mine in central Peru over a century. The company’s approach to El Metalurgista includes reprocessing and environmental remediation of mining waste as well as creating numerous opportunities in a circular economy. The facility is one of the largest above-ground resources in the world.