Cerro De Pasco Resources Inc (CSE:CDPR, OTC:GPPRF) said it has closed its previously announced non-brokered private placement for total aggregate gross proceeds of $1,004,000, with the net proceeds to be used for working capital.
Under the placement, the company issued 10.04 million units at a price of 10 cents per unit, each unit consisting of one common share and one common share purchase warrant.
Each warrant entitles the holder to purchase one common share at an exercise price of 25 cents per common share for a period of 24 months from the date of issuance of the warrant, subject to an acceleration clause.
In connection with the offering, Cerro de Pasco paid finders' fees of $28,630 and issued 286,300 broker warrants to certain arm's-length third parties. Each broker warrant entitles its holder to purchase one common share at a price of 25 cents per common share for a period of 24 months from the date of issuance.
All securities issued in connection with the offering are subject to a statutory hold period ending four months and one day from the date of their issuance.
Cerro de Pasco Resources is a mining and resource management company with the goal to become the next mid-tier producer of base metals in Peru. It is currently engaged in mining, developing and exploring its wholly-owned 6,000-hectare Santander Mine in the highly prospective Antamina-Yauricocha Skarn Corridor, located 215 kilometres from Lima.
The company is also focused on the development of its principal 100%-owned El Metallurgista mining concession comprising mineral tailings and stockpiles extracted from the historical Cerro de Pasco open-pit mine in central Peru.
Contact the author at jon.hopkins@proactiveinvestors.com