Cerro de Pasco Resources Announces Convertible Debenture Financing & Quiulacocha Drilling Program in Peru

October 16, 2020

On October 16, 2020, Cerro de Pasco Resources Inc. (CSE:CDPR) (the ”Company”) announced that it has completed a convertible debenture financing transaction in the principal amount of $1,000,000 (the “Debenture”) with an international investor (the “Investor”). The Debenture is repayable in one year with interest at 10% per year. The Debenture will be used for general working capital and beginning the Quiulacocha Drilling Program, which involves exploration of a tailings storage facility that was closed in 1992 and is understood to contain approximately 70 million tonnes of processed tailings from silver, gold, copper, zinc and lead sulphide ores processed from the Cerro de Pasco Mine in Peru.

The principal amount of the Debenture is convertible, at the option of the Investor, into common shares of the Company at $0.60 per share, which represents a 64% premium over the closing price of the Company’s shares on October 14, 2020.  An aggregate of 1,857,143 common share purchase warrants (the “Warrants”) were also issued to the Investor. Each warrant entitles the holder to acquire an additional common share at a price of $0.60 until October 15, 2022.

Miller Thomson LLP provided advice to the Investor with a team that included Geoff Clarke, Jonathan Tong, Desmond Christy (Securities and Mining) and Amanda Plastina (Financial Services).