Cerro de Pasco signs $2M settlement with Trevali

On December 12, 2025, Cerro de Pasco Resources announced it has signed a definitive settlement agreement with Trevali Mining Corp. and its court-appointed monitor, FTI Consulting. The agreement resolves all claims related to the 2021 acquisition of the Santander mine.

Under the terms, Cerro de Pasco will make a one-time payment of CAD $2,000,000. In exchange, all claims and counterclaims will be mutually released. This settlement will eliminate liabilities on Cerro de Pasco's balance sheet totaling USD $4,084,164, which consists of a USD $1,584,164 purchase price payable and a USD $2,500,000 contingent consideration payable. The company expects to record a material gain on settlement in its financial statements. The agreement is subject to approval by the Supreme Court of British Columbia, with a hearing scheduled for December 16, 2025.

The settlement with Trevali is materially positive. It marks the final step in cleaning up the company's balance sheet and removing legacy issues, allowing management to focus entirely on its flagship Quiulacocha Tailings Reprocessing Project.

Reviewing the historical news provides crucial context: - Financial Transformation (July - November 2025): The company's turnaround began with the sale of the Santander mine (announced in the July 30, 2025 annual results), which removed over $70 million in liabilities. This was followed by a "Game Changer" CAD $22.7 million financing in November 2025, led by notable resource investor Eric Sprott. This financing fully funded the company for the next stage of development. - Strategic Clean-up: The Trevali liabilities, totaling ~USD $4.1M, were the last significant overhang from past transactions. Settling this for a cash payment of only CAD $2M is an excellent outcome. It removes uncertainty, avoids potentially costly and distracting legal proceedings, and results in a net positive impact on the balance sheet and a one-time gain on the income statement. The cost of the settlement is minor relative to the company's post-financing cash position of over CAD $30M. - Project Advancement (December 2024 - December 2025): Throughout the year, the company consistently released positive drill results from its Quiulacocha project, confirming high-grade polymetallic mineralization and identifying valuable strategic metals like gallium. The December 10, 2025 update confirmed permitting and technical work are advancing as planned.

This settlement solidifies the company's transition from a financially constrained entity with legacy issues to a well-capitalized developer with a clear path forward on a world-class asset. The news is in line with the new strategic focus and removes a key risk that could have been a drag on the company's valuation and management's attention.

Cerro de Pasco Resources Inc. is a Canadian resource company focused on developing its 100%-owned El Metalurgista concession in Peru. The company's strategy is not traditional mining but rather the reprocessing of historical mining waste to recover valuable metals.

Its flagship project is the Quiulacocha Tailings Storage Facility (TSF), one of the largest above-ground resources in the world. It contains an estimated 75 million tonnes of tailings deposited over a 70-year period. Recent drilling confirmed an average grade of 5.5 oz/t AgEq, including silver, zinc, lead, copper, gold, and significant concentrations of strategic metals gallium and indium. The project has the dual benefit of potential economic returns and environmental remediation of the historic mining district. The property is subject to a 2.0% NSR, which can be bought back for payments totaling $10.5M.