Cerro de Pasco closes $513,611 2nd tranche of financing

2020-07-02 14:42 ET – News Release

Mr. Guy Goulet reports

CERRO DE PASCO RESOURCES CLOSES SECOND TRANCHE NON-BROKERED PRIVATE PLACEMENT

Cerro de Pasco Resources Inc. has closed the second tranche of a non-brokered private placement offering for a gross proceeds of $513,611 and issued 1,712,034 common share units of the company at a price of at a price of 30 cents per unit.

Under the first and second tranches of the offering, the company raised aggregate gross proceeds of $1,661,561.

Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional share at a price of 50 cents per share 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 per share for any 20 consecutive trading days at any time prior to the expiry of the warrants.

The company will use the net proceeds of the offering for working capital purposes.

In connection with the second tranche, the company paid an amount of $5,994 as finders’ fees to arm’s-length third parties.

One officer of the company purchased a total of 150,000 units. Their participation in the offering constitutes a related-party transaction as defined under National Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). However, such participation is exempt from the valuation and minority shareholder approval requirements of NI 61-101 based on the fact that neither the fair market value of the offering, nor the consideration paid by such persons, exceeds 25 per cent of the company’s market capitalization. The company did not file a material change report at least 21 days prior to the closing of the offering as participation of the insiders had not been established at that time.

Any securities issued pursuant to the offering will be subject to a hold period under applicable securities laws which will expire four months and one day from the date of their issuance.

About Cerro de Pasco Resources Inc.

Cerro de Pasco is a resource management company, with a focus on applying the latest technology in the production of commodity metals through the treatment and reprocessing of all material resources, dumps, tailings, mining waste and more at Cerro de Pasco in order to secure long-term economic prosperity.

We seek Safe Harbor.

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