Cerro de Pasco Resources Acquires the Remaining Quiulacocha Tailings and Secures Surface Rights, Consolidating 100% of the Tailings

Cerro De Pasco Resources Inc. (CDPR) announced the closing of definitive agreements to acquire 100% of the Quiulacocha tailings and a 30-year surface usufruct from Activos Mineros S.A.C. (AMSAC), a Peruvian state-owned entity. Total consideration paid at closing on Oct 20, 2026, was US$6.65 million, comprising a transfer price of US$3.78 million, a non-refundable usufruct premium of US$1.435 million, and the first annual usufruct fee of US$1.435 million.

Ongoing obligations include an annual usufruct fee of US$1.435 million plus taxes, quarterly acid water treatment costs, and a sliding-scale contractual royalty on operating profit ranging from 1% to 6% of revenue. The project enters a pre-operational phase pending Environmental Impact Assessment (EIA) approval. No NI 43-101 Mineral Resource or Reserve has been established for the tailings. Immediate next steps include applying for reprocessing authorization and preparing the first Mineral Resource Estimate.

Cerro De Pasco Resources Inc. (CDPR) completed the acquisition of remaining interests following the October 12, 2026 public auction award, a development that was fully anticipated by the market. The transaction represents a routine follow-up milestone rather than a new catalyst.

The deal required a US$6.65 million cash outflow, which reduces the company’s already tight cash position of US$22.38 million as of Q2 2027 by roughly 30%. Combined with a US$1.435 million annual fee and sliding royalties, the ongoing burn rate increases significantly.

Strategically, consolidating 100% rights eliminates tenure ambiguity and aligns with the company's stated goal of securing the entire tailings footprint. However, this comes at a direct cost to a project that remains pre-revenue, pre-resource, and pending permitting. The news is incremental and expected, adding measurable financial drag to an unproven asset without altering its fundamental risk profile.

Cerro De Pasco Resources Inc. (CDPR) is a pre-revenue junior mining company focused on the Quiulacocha Tailings Reprocessing Project in the Pasco Region of Peru. The flagship asset is located within one of the world's most prolific polymetallic districts, which historically produced zinc, lead, silver, and copper from 1921 to 1992. The project targets the recovery of silver, base metals, and critical minerals, including gallium and indium, from historic tailings using a conceptual two-concentrate flowsheet consisting of pyrite and base metals.

The company holds a 100% interest in the El Metalurgista concession and has consolidated surface rights over the entire Quiulacocha Tailings Storage Facility. No NI 43-101 Mineral Resource or Reserve exists, and the project remains in the conceptual and technical evaluation phase, pending drilling, metallurgical scale-up, and permitting.