Position Statement Regarding Cerro de Pasco Resources
MONTRÉAL, Nov. 25, 2020 - Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCMKTS: GPPRF) (Frankfurt : N8HP) ("CDPR" or the "Company") provides its position statement regarding Cerro de Pasco and with respect to the forthcoming referendum concerning the 'Responsibilities of Big Companies Doing Business Worldwide' in Switzerland on November 29, 2020. CDPR notes the comments made by the Responsible Business Initiative Committee concerning Glencore in relation to Cerro de Pasco. Regardless of the outcome of the referendum, CDPR continues to pursue closing an equitable transaction with Glencore and Volcan, because it is uniquely positioned, qualified, and experienced to bring about the best possible outcome for all stakeholders, especially for the local population in Peru and the environment.
Cerro de Pasco Resources is the owner of the El Metalurgista Concession which is situated immediately adjacent to the Cerro de Pasco mining operation and includes the Quiulacocha tailings and Excelsior waste deposits.
The Company has been in active discussions with Volcan with a view to acquiring and integrating the entire Cerro de Pasco operation into CDPR. The Parties have agreed to continue discussion with a view to completing the transaction as soon as possible.
In anticipation of completing the transaction, CDPR is arranging financing commitments and expressions of interest in excess of USD60M in a combination of equity and unsecured debt financing to satisfy conditions precedent relating to demonstrating financial capability. This amount is for the initial handover phase.
CDPR has unparalleled in-house knowledge of the challenges and opportunities presented by the mineral endowment within the Cerro de Pasco mining complex. The Company benefits from its first-hand experience and a comprehensive team of experts using world class geo-resource and industrial development solutions to secure long-term economic and operational sustainability in harmony with a healthy and prosperous local population.
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History of Cerro de Pasco – Why the Situation is the Way it is Today
Cerro de Pasco is a famous polymetallic mine located in the central Peruvian highlands. The operation is nearly 400 years old and was discovered by the Spanish in 1630. The mine was operated informally by many operators and commercially developed in 1902 by Cerro de Pasco Copper Corporation, a company then listed in New York. At the time it was one of the biggest, most prolific copper-silver mines in the world and it continued to grow very significantly over the subsequent half century becoming one of the most important mining centers for Peru & South America. In the early 1950's the focus of exploitation shifted from copper, gold and silver to zinc, lead and silver as base metals demand grew worldwide.
In 1974 the Cerro de Pasco Mine was nationalized by Peru's military Government. During this period of State ownership, the mine was developed with little regard for the environment or the health of its workers and local communities.
In 1999 Volcan acquired the Cerro de Pasco Mine from the Peruvian government. The transaction specifically excluded the Quiulacocha and Excelsior waste deposits. Under the ownership of Volcan the operation continued to produce zinc, lead and silver from the material within the mine and responsibly depositing the waste in the fully permitted Ocroyoc tailings storage facility. In 2012-2014 the open pit and underground mining operations wound down and processing shifted towards the treatment of old stockpiles which continues today. In 2015, Volcan commissioned a precious metal leaching facility to process remaining in-situ oxide material and which continues to operate today.
In 2017 Glencore acquired a controlling interest in Volcan and thereby an indirect interest in the Cerro de Pasco operation.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a Canadian resource management company, with a focus on applying the latest technology in the production of commodity metals through the treatment and reprocessing of all material resources, dumps, tailings, mining waste etc. at Cerro de Pasco in order to secure long-term economic prosperity. CDPR strives to meet to the highest level of environmental, social and legal compliance. CDPR provides extensive knowledge of Cerro de Pasco's challenges and potential, based on first-hand experience and a team of top experts.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks", "expects", "estimates", "intends", "anticipates", "believes", "could", "might", "likely" or variations of such words, or statements that certain actions, events or results "may", "will", "could", "would", "might", "will be taken", "occur", "be achieved" or other similar expressions. Forward-looking statements, including the expectations of CDPR's management regarding the completion of the Transaction as well as the business and the expansion and growth of CDPR's operations, are based on CDPR's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of CDPR to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements are subject to business and economic factors and uncertainties and other factors, such as Covid-19, that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in CDPR's public documents, available on SEDAR. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although CDPR believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements and forward-looking information. Except where required by applicable law, CDPR disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Cerro de Pasco Resources Inc.
Contact
Guy Goulet, CEO, Telephone: +1-579-476-7000, Mobile: +1-514-294-7000, ggoulet@pascoresources.com