Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCPK: GPPRF) (FRA: N8HP) is pleased to announce that it has closed an initial tranche of its previously announced non-brokered private placement offering. In connection with the closing of the initial tranche, the Company issued 3,395,000 units at a price of $0.35 per Unit for gross proceeds of $1,188,250.
Each Unit consist of one common share of the Company and one-half of one common share purchase warrant. Each Warrant entitles the holder to purchase an additional common share at a price of $0.50 for a period of 24 months from the date of issuance, provided however that the Company shall be entitled to accelerate the expiry of the Warrants to the date that is 30 days following the date a notice is provided to the holder in the event that the volume weighted average price of the Shares on the Canadian Securities Exchange exceeds $1.00 per Share for any twenty (20) consecutive trading days at any time prior to the expiry of the Warrant.
The Company anticipates closing a subsequent tranche of the Offering on or before April 16, 2021.
The net proceeds of the Offering will be used for general working capital purposes in advancing the Company’s Quiulacocha tailings retreatment Project in Peru. In connection with the completion of the initial tranche of the Offering, the Company paid finder’s fees of $80,728 (6.7%) to certain parties who assisted the Company by introducing subscribers to the placement. The Company may pay additional finder’s fee on subsequent tranches of the placement.
All securities issued in connection the closing of the initial tranche of the Offering, and any subsequent tranches, will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of any offer to buy securities in the United States, nor in any other jurisdiction.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a resource management company, founded in 2012 and publicly listed in 2018, with the purpose of treating and reprocessing all dumps, tailings, mining waste and material resources in the Cerro de Pasco Region in Peru. Our ambition is to restore long-term sustainability to the mining activity in the Cerro de Pasco Region, in harmony with a healthy and motivated local population. Our team brings first-hand experience and ideas based on innovative solutions and a holistic approach, aiming to create numerous opportunities in a circular economy
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