Cerro de Pasco Secures $22.7M to Advance Silver Project

• Cerro de Pasco Resources closed $22.7 million in combined financings on November 7, 2025, with veteran resource investor Eric Sprott contributing $4 million and maintaining his position as the company's largest outside shareholder at 16.3 percent.
• The Quiulacocha tailings facility represents one of the world's largest above-ground metal resources with a historic estimate of 423 million ounces silver equivalent already extracted and ready for reprocessing at dramatically lower costs than traditional mining.
• Silver futures reached record highs on India's Multi-Commodity Exchange at 184,727 rupees per kilogram on December 3, 2025, while COMEX silver rallied to $59.165 per troy ounce, driven by persistent supply deficits and quadrupling photovoltaic demand.
• Recent drilling confirmed significant gallium (53.2 g/t) and indium (19.9 g/t) grades, positioning the company to supply critical minerals for semiconductors and green technology as China controls 98 percent of global gallium production.
• With land easement secured, 40-hole drilling program completed, and existing infrastructure in place, Cerro de Pasco advances toward feasibility with extraction costs of $1 to $2 per tonne compared to $30 to $200 for underground mining.

Cerro de Pasco Resources Inc. (TSXV: CDPR, OTCQB: GPPRF) closed a significant financing round in November 2025 that positions the junior mining company to advance its flagship Quiulacocha tailings reprocessing project in Peru toward feasibility and potential production. The $22.7 million capital raise, backed by prominent resource investor Eric Sprott and a syndicate of major investment banks, arrives as silver markets reach record price levels globally. For investors seeking exposure to precious metals and strategic minerals through a de-risked development model, the company presents a compelling case built on an already-extracted resource, existing infrastructure, and favorable commodity fundamentals.

The financing package, comprising both a listed issuer financing exemption offering and concurrent non-brokered placement, provides the company with runway to complete technical studies and environmental assessments required for feasibility-stage advancement. With recent drilling confirming high-grade silver alongside economically significant concentrations of gallium and indium, Cerro de Pasco addresses both traditional precious metals demand and emerging critical minerals supply chains that face geopolitical concentration risks.

The Quiulacocha project's unique value proposition centers on reprocessing 75 million tonnes of tailings deposited over more than a century of operations at the historic Cerro de Pasco mining district. This approach eliminates traditional mining costs while addressing environmental remediation objectives, creating alignment between commercial development and sustainability goals that increasingly influence investor capital allocation decisions.

Company Overview

Cerro de Pasco Resources operates as a specialized mining development company focused exclusively on its 100 percent-owned El Metalurgista mining concession in the Pasco region of Peru, approximately 175 kilometers northeast of Lima. The concession encompasses 95.74 hectares and includes mineral rights to 57 hectares of the Quiulacocha Tailings Storage Facility, which holds the accumulated byproducts of operations dating to the early 1900s.

The company's strategy differentiates from traditional exploration and mine development by targeting already-extracted material that remains economically viable for reprocessing with modern metallurgical techniques. This model eliminates approximately 40 percent of typical operational costs associated with drilling, blasting, excavation and ore hauling that characterize conventional mining operations. The tailings facility contains sulphide mineralization with an estimated historic average grade of 5.5 ounces per tonne silver equivalent based on recent drilling results.

Management and board composition reflects deep experience in Latin American mining operations and capital markets. Guy Goulet serves as Chief Executive Officer and Executive Director, bringing over 30 years of investment experience in the mining sector. Executive Chairman Steven Zadka contributes 15 years of transactional and executive management experience across Latin America and North America. The board includes independent directors with extensive mining development and operational experience.

The Financing: Strategic Capital Raise

The November 7, 2025 financing closed in two tranches totaling $22,736,139.36 through 47,366,957 units priced at $0.48 per unit. The listed issuer financing exemption offering raised $14,998,179.36 through 31,246,207 units, while the concurrent non-brokered private placement contributed $7,737,960.00 through 16,120,750 units. Each unit comprises one common share and one-half warrant, with full warrants exercisable at $0.68 until November 7, 2027.

The offering was led by co-lead agents and joint bookrunners, supported by a syndicate of established investment banks. The participation of these financial institutions signals institutional validation of the project's technical and economic merit. Agents received cash compensation of $899,620.76 plus 1,874,772 broker warrants exercisable at the offering price for 24 months.

Eric Sprott's participation through 2176423 Ontario Ltd. represented the financing's most significant endorsement. The veteran resource investor contributed approximately $4 million for 8,333,333 units, maintaining his position as the company's largest outside shareholder. Sprott holds 16.3 percent of issued shares, expanding to 22.0 percent on a fully diluted basis. His consistent participation in every offering since becoming a significant shareholder demonstrates sustained conviction in the project's value proposition and management's execution capability.

Guy Goulet, Chief Executive Officer, Cerro de Pasco Resources mentioned:

"With the completion of this financing, Cerro de Pasco is in a stronger financial position to advance the Quiulacocha Project through the full feasibility stage and toward pre-construction readiness. Our immediate focus is on executing the technical, environmental, and engineering programs that will define the project's design and secure the highest standards of performance and sustainability."

Quiulacocha Tailings: A Unique Asset

The Quiulacocha Tailings Storage Facility represents the accumulated byproducts of two distinct operational eras at Cerro de Pasco: the copper era from 1906 to 1965 and the polymetallic era from 1952 to 1992. The facility covers approximately 115 hectares and contains an estimated 75 million tonnes of material with a historic estimate of 423 million ounces silver equivalent. This estimate derives from metallurgical balances and production records maintained during decades of operation.

Recent drilling results from a completed 40-hole program confirmed commercially attractive grades across multiple metals. The company reported average grades of 1.66 ounces per tonne silver, 1.47 percent zinc, 0.89 percent lead, 0.09 percent copper, and 0.10 grams per tonne gold. These results align with historic estimates derived from metallurgical balances while providing modern verification using current analytical standards.

The deposit's grade profile compares favorably to primary silver mining operations globally while offering the economic advantage of zero mining costs. Material extraction involves excavation and wet tailings pumping at costs typically ranging from $1 to $2 per tonne, compared to $2 to $15 per tonne for open-pit operations and $30 to $200 per tonne for underground mining.

Silver Market Tailwinds

Silver markets entered 2025 with fundamental supply-demand dynamics that support elevated pricing. The market recorded its fourth consecutive annual supply deficit in 2023, reaching 184.3 million ounces. The 2024 market deficit reached 148.9 million ounces, marking the fourth consecutive year of structural deficits, driven by record industrial consumption of 680.5 million ounces. Photovoltaic solar panel manufacturing represents the fastest-growing silver demand sector, with consumption quadrupling from 59.6 million ounces in 2015 to an estimated 232 million ounces in 2024.

Price performance reflects these supply constraints across global markets. On December 3, 2025, silver futures for March 2026 delivery on India's Multi-Commodity Exchange reached a record high of 184,727 rupees per kilogram, rising 3,126 rupees or approximately 1.72 percent in a single session. International markets showed similar momentum, with January 2026 delivery silver on COMEX rallying to $59.165 per troy ounce.

The metal's dual role as both precious metal and industrial commodity creates diversified demand sources. Factors driving the recent advance included currency movements against the dollar, Federal Reserve rate cut expectations, and reduced silver inventories in major consuming countries creating supply constraints.

Strategic Metals: Gallium & Indium

The Quiulacocha tailings drilling program revealed an unexpected strategic value component beyond traditional precious and base metals. Assay results confirmed average gallium grades of 53.2 grams per tonne and indium grades of 19.9 grams per tonne across the 40-hole program. These metals command premium prices and face concentrated supply chains that create opportunity for new production outside dominant suppliers.

Gallium serves critical roles in semiconductor manufacturing, 5G telecommunications infrastructure, LED lighting systems and solar panel production. China produces approximately 98 percent of global primary gallium, with output reaching 750,000 kilograms in 2024 compared to rest-of-world production of just 12,000 kilograms. This extreme concentration creates supply chain vulnerability for Western technology manufacturers and defense contractors.

Indium faces similar supply concentration dynamics while serving specialized applications in flat panel displays, touch screens and solar cells. For Cerro de Pasco, gallium and indium represent potential value streams that receive minimal credit in historic silver-equivalent calculations but could contribute meaningful revenue in eventual commercial operations.

The Investment Thesis for Silver Tailings Reprocessing

• Companies with historic resources face significant rerating potential upon publishing NI 43-101 compliant resource estimates and positive feasibility studies.
• Major resource investors with multi-decade track records provide validation signal; sustained buying through multiple financings indicates conviction beyond initial position establishment.
• Gallium and indium values receive minimal credit in current valuations; supply chain diversification themes may drive premium valuations for non-Chinese sources.
• Three consecutive deficit years with accelerating industrial demand growth creates favorable commodity pricing environment potentially extending through project development timeline.
• Existing processing plants with 20,000 tonnes per day combined capacity, established power and water access, and proven workforce availability reduce execution risks.
• $1 to $2 per tonne tailings extraction costs versus $30 to $200 per tonne for underground primary mining creates substantial operating margin advantage.

Cerro de Pasco Resources presents a differentiated investment thesis in the precious metals sector, combining immediate silver leverage with strategic minerals exposure through a development model that eliminates traditional mining costs and timelines. The November 2025 financing provides capital runway to advance feasibility studies that will quantify the project's economics under current metal prices and modern engineering standards, potentially catalyzing material rerating as technical documentation progresses toward bankable status.

Eric Sprott's sustained participation across multiple financings totaling $4 million in the most recent round signals institutional-caliber investor conviction in the project's value proposition. His allocation represents meaningful capital from one of the resource sector's most successful investors, whose participation in previous developments has attracted broader institutional and retail followings.

The convergence of favorable silver fundamentals with strategic minerals supply chain diversification priorities creates a compelling macro backdrop for project advancement. The discovery of commercially attractive gallium and indium grades adds dimension beyond traditional precious metals exposure. For investors seeking silver exposure with development timeline advantages and strategic minerals optionality, the company merits consideration as feasibility studies advance through 2025.

TL;DR

Cerro de Pasco Resources closed $22.7 million in November 2025 financing with $4 million from Eric Sprott to advance its Quiulacocha tailings reprocessing project in Peru. The asset contains a historic estimate of 423 million ounces silver equivalent in already-extracted material processable at $1 to $2 per tonne versus $30 to $200 for underground mining. Recent drilling confirmed 5.5 oz/t silver equivalent grades plus commercially significant gallium (53.2 g/t) and indium (19.9 g/t) for critical minerals exposure. Silver markets face their third consecutive supply deficit as photovoltaic demand quadruples.

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