RiverFort’s partnership with Cerro de Pasco Resources (“Cerro”) has been a critical driver in the company’s growth and progress toward sustainable mining.
Investment Chronology and Cerro Milestones
RiverFort began supporting Cerro in 2020, providing an initial $1 million convertible debenture to fund the Quiulacocha Tailings Project’s drilling program Announcement and a further investment of $500k in June 2021 These early investments helped Cerro secure the working capital needed for exploration and initial development. The funding was a demonstration of RiverFort’s confidence in Cerro’s long-term potential following extensive due diligence on the Quiulacocha Tailings Project and the management of Cerro.
As Cerro progressed with its exploration and operational activities, RiverFort continued to offer crucial financial backing, restructuring its funding with the board of Cerro to ensure Cerro remained sufficient funded despite challenging market fluctuations. To further ensure capital runway the board of Cerro took the decision in 2023 to reduce activity on its Santander project. The Santander project (being not attached to the Quiulacocha Tailings Project) was subsequently divested by Cerro in September 2024 (Pasco Resources - News Releases).
In January 2024, following the initial application commencing in 2022, the Quiulacocha Tailings Project received its Land Easement grant (Pasco Resources - News Releases), unlocking the potential of the Quiulacocha Tailings Project and enabling a capital raise of c.CDN$3 million in April 2024.
In July 2024 Eric Sprott (a highly respected figure in the mining industry known for his discerning investments and long-term vision) first participated in a placing in excess of CDN$3 million and took a stake of 9% in Cerro. Pasco Resources - News Releases
On September 26, 2024, Announcement a non-brokered private placement of in excess of $3 million increased Eric Sportt’s stake in Cerro to approximately 13.9%, underscoring his strong confidence in Cerro’s strategic direction and long-term potential.
On 15 October 2024 Cerro was able to announce its incredibly positive initial results from the first phase of preliminary drill testing (Pasco Resources - News Releases).
Following the increasing stake of Eric Sprott in Cerro as well as additional capital raises and positive news flow from the initial drill testing, Cerro secured an additional $15 million funding raise in October 2024, Announcement with Sprott’s involvement playing a crucial role. At this time RiverFort converted its debenture into shares at the fixed price to provide further capital runway as part of the drilling project. The Offering Document for Cerro confirms the placement fully funds all the drilling to be undertaken as part of the assessment of the Quiulacocha Tailings Project. Cerro intends to use the placing proceeds to fund exploration at the Quiulacocha Tailings Project, and for general corporate and working capital purposes.
Where are Cerro now?
Eric Sprott’s involvement with Cerro de Pasco is more than a vote of confidence; it signifies the endorsement of a seasoned investor with a history of successful investments in the mining sector. Known for his deep expertise and commitment to sustainability-focused ventures, Eric Sprott’s increased stake not only strengthens Cerro’s capital structure but also reinforces its credibility within the industry. Sprott’s reputation as a discerning investor who values sustainable mining practices aligns well with Cerro’s goals of environmental responsibility and strategic growth.
As confirmed in the Offer Document for the October placing, following close of the October placing Eric Sprott beneficially owns or controls 64,749,000 Common Shares and 30,000,000 warrants of the Corporation, representing approximately 14.7% of the outstanding Common Shares on a non-diluted basis and 20.2% on a partially diluted basis, assuming the exercise of the warrants granted as part of the placing.
With these strong capital reserves and positive drilling outcomes, as well as the key stakeholder of a seasoned resources investor in Eric Sprott, Cerro is exceptionally well-positioned to accelerate its growth and achieve its long-term objectives. The recent progress, fueled by both RiverFort’s and Sprott’s support, strengthens Cerro’s ability to advance the Quiulacocha Tailings Project.
Looking ahead, we anticipate Cerro de Pasco’s ongoing success as they continue to drive impactful growth.
Cerro De Pasco Resources Inc (CSE: CDPR) (OTCPK: GPPRF) (FRA: N8HP)
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