Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) (CDPR) has announced that it intends to complete a non-brokered private placement offering of up to 20 million company units, at a price of C$0.10 per unit, for gross proceeds of up to C$2 million.
The mining and resource management company said it intends to use the net proceeds from the offering towards the development of the Quiulacocha tailings and for working capital.
Each unit will be comprised of one company common share plus half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional CDPR unit at a price of $0.15 per warrant unit until the earlier of the date which is 24 months after the closing date of the offering.
CDPR noted that in the event that, during the period following 24 months from the closing date, the volume-weighted average trading price of the common shares exceeds $0.60 per share for any period of 20 consecutive trading days, the company may, at its option, following such 20-day period, accelerate the expiry date of the warrants by delivery of notice to the registered holders.
All securities issued in connection with the offering will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
CDPR is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru.
The company 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.
Contact Sean at sean@proactiveinvestors.com