Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) announced that it has closed a $15 million brokered private placement, including a $5 million investment from Eric Sprott.
The net proceeds from the offering will primarily fund exploration at the Quiulacocha Tailings Project and for general corporate purposes.
The placement consisted of 33,333,333 units offered at $0.30 per unit, which includes both a LIFE offering and a concurrent brokered private placement.
Each unit comprises one common share and one half-warrant, with the full warrant enabling the purchase of additional shares at $0.50 per share for two years.
Notably, Sprott's participation, through his 2176423 Ontario Ltd, increases his holdings to approximately 16.6% of CDPR's outstanding shares on a non-diluted basis, and 22.7% on a partially diluted basis.
Sprott has agreed not to exercise his warrants if it would result in his holdings exceeding 20% of the company's shares without shareholder approval.
The offering was arranged by SCP Resource Finance LP, which earned a 6% cash fee and warrants entitling them to purchase units at the offering price.