Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) has raised $3 million through a private placement, with mining investor Eric Sprott significantly increasing his stake in the company.
The investment by Sprott is viewed as a strong vote of confidence in Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF).
“His continued support reflects confidence in our mission and progress," said Guy Goulet, CEO of Cerro de Pasco.
"This private placement strengthens our capital structure and allows us to focus on advancing our strategic objectives and delivering value to our shareholders."
Prior to the offering, Sprott held nearly 42.4 million common shares and 20 million warrants, which represented approximately 9.9% of CDPR's outstanding shares on a non-diluted basis and 13.9% on a partially diluted basis.
Following this latest investment, Sprott now controls around 62.4 million shares and 30 million warrants, boosting his ownership to 13.9% of the outstanding shares on a non-diluted basis and 19.3% on a partially diluted basis.
Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) is advancing the development of its fully-owned El Metalurgista mining concession in Central Peru, focusing on reprocessing silver-rich tailings and stockpiles from over a century of mining operations, with an emphasis on environmental remediation and circular economy opportunities.
The proceeds from the private placement are intended for key operational activities, including drilling, sampling, metallurgy, and general working capital.
Shares were offered at $0.15, with 20 million sold in the latest private placement.
Each unit in the offering comprises one common share and one-half of one common share purchase warrant. Each whole warrant grants the holder the right to purchase a common share at $0.20, subject to certain conditions.