Cerro de Pasco Resources Announces Closing of $22.7 Million in Combined LIFE and Non-Brokered Private Placements, Including Participation by Eric Sprott

On November 7, 2025, Cerro de Pasco Resources announced the closing of combined brokered and non-brokered private placements for total gross proceeds of $22,736,139. The financing consisted of 47,366,957 units sold at a price of $0.48 per unit. Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable at $0.68 for a period of 24 months. The financing saw participation from strategic resource investor Eric Sprott. The proceeds will be used to advance the technical, environmental, and engineering work for the feasibility stage of the Quiulacocha Tailings Project and for general corporate purposes.

This financing is a game-changing event for Cerro de Pasco. The analysis of historical news shows a clear progression: - Strategic Pivot: In 2024/2025, the company divested its Santander mine, removing significant liabilities and sharpening its focus exclusively on the Quiulacocha tailings project. - Technical De-risking: Throughout early 2025, the company released a steady stream of positive drill results from a 40-hole program at Quiulacocha, confirming high-grade polymetallic mineralization and, critically, identifying significant concentrations of the strategic metal gallium. - Capital Raise: The financing was first announced on October 20, 2025, for up to $15 million. It was subsequently amended and upsized to a target of $22 million, and has now closed oversubscribed at $22.7 million.

The material impact is threefold: 1. Financial Fortification: The $22.7 million cash injection fundamentally de-risks the company's balance sheet. Based on their June 30, 2025 financials, which showed a cash position of ~$12.1 million and a quarterly operating cash burn of ~$1.9 million, this new capital provides a multi-year runway. It fully funds the company through the next major milestone: a full feasibility study for the Quiulacocha project. This removes any near-term financing overhang, which is a major risk for a development-stage company. 2. Third-Party Validation: The participation of renowned resource investor Eric Sprott is a significant endorsement of the project's potential and management's strategy. This validation can attract further institutional interest and adds a layer of credibility that is difficult to quantify but immensely valuable. His continued support, following a previous investment in November 2024, is a strong positive signal. 3. Project Advancement: The stated use of proceeds is to advance Quiulacocha to the feasibility stage. This is the most critical step in transitioning from an exploration concept to a viable, financeable project. Successfully completing a feasibility study is the primary catalyst for unlocking the project's value and attracting potential construction financing or strategic partners.

Closing an upsized financing with a key strategic investor is the best possible outcome. It confirms strong market interest and provides the company with the resources and validation needed to execute its business plan. The placement price of $0.48 per unit, with a warrant at $0.68, establishes key new price levels for the market to watch.

Cerro de Pasco Resources Inc. is a Canadian-based resource management and development company. After selling its Santander mine, the company's sole focus is the development of its 100%-owned El Metalurgista concession in Peru. This concession contains the Quiulacocha Tailings Storage Facility, one of the world's largest above-ground mineral resources. The project aims to reprocess an estimated 75 million tonnes of historical tailings from over a century of mining at the adjacent Cerro de Pasco mine. The business model combines the economic potential of recovering silver, zinc, lead, and strategic metals like gallium, with the significant environmental benefit of remediating the historical tailings.