Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) announced that it has secured the funds to cover the fee payable related to the legal easement which will provide the company access to the surface areas corresponding to its El Metalurgista Concession and the Quiulacocha Tailings Project in Peru.
This, in turn, will enable CDPR to initiate a 40-hole drilling campaign.
The miner said that the company has fulfilled all of the legal requirements for the granting of the easement with no further delays expected.
With the Minister of Energy and Mines himself expressing full support, the company expects the signature of the Supreme Resolution granting the easement imminently.
Upon the publication of the Supreme Resolution, the company will pay approximately C$1,350,000 to a specific bank account of Banco de la Nacion.
CDPR said funding for the easement was secured by the sale of 15,450,000 subscription receipts of the company at $0.10 each for aggregate gross proceeds of $1.545 million.
It said the funds will be held in escrow until certain release conditions have been satisfied at which point each subscription receipt will automatically be converted into a unit of the company.
Each unit will consist of a share and a half unit purchase warrant, with each warrant entitling the holder to acquire an additional unit at $0.15 until the earlier of 24 months from the issue date or, if applicable, an accelerated expiry date.
The company expects to pay finders’ fees of $21,000 and issue 210,000 warrants to arm’s length third parties in connection with the offering.
It also noted that it expects to close an additional tranche of this fundraising by the end of the month.