Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) Inc said it has raised a gross C$3.3 million, including from renowned mining investor Eric Sprott.
CDPR confirmed that it issued 32.98 million units at a price of $0.10 apiece in a non-brokered private placing, with each unit consisting of one share and one warrant to purchase a share at an exercise price of $0.15 for a period of 24 months.
The company had announced the fundraising last month, saying it aimed to raise around $2 million as it begins drilling at its Quiulacocha tailings project in Peru. The net proceeds will be used for drilling and general working capital, CDPR said.
Sprott is now a new insider of the corporation, CDPR said, with a 9% stake in the company on a non-diluted basis and 13.3% on a partially diluted basis assuming the exercise of the warrants.
He acquired 20 million of the new units via his 2176423 Ontario investment vehicle and bought a further 17 million existing shares from an existing shareholder to give him ownership or control over 37 million shares and 20 million warrants.
Sprott acquired the shares for investment purposes, the company said, adding that he "has a long-term view of the investment" and may increase or decrease his beneficial ownership of or control over the corporation’s securities in the future, either in the open market or via private purchases or sales.
Guy Goulet, CEO of CDPR, said: “We are pleased to close this critical funding round and in parallel delighted to welcome Mr Sprott as an investor into Cerro de Pasco Resources.
"We look forward to moving ahead with drilling activities at the Quiulacocha Tailings Project in late July, with the objective of producing a master plan for reprocessing the entire Quiulacocha tailings resource."
In May, the company received the final go-ahead from the Peruvian government to begin engineering studies and a 40-hole drilling program at Quiulacocha, with studies intended to begin this month, including geophysical surveys, laboratory testing, mineralogy assessments, and resource estimation, all aimed at completing a Preliminary Economic Assessment (PEA).