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(Kitco News) - Cerro de Pasco (CSE:CDPR) (OTCPK: GPPRF) announced today that it has signed a term sheet with Ocean Partners UK (OPUK) and Arena Investors (ARENA) to provide an aggregate of US$ 12.0M to US$ 15.5M, consisting of a US$ 8.0M loan facility from ARENA and a US$ 4.0M to 7.5M revolving concentrate pre-payment facility from OPUK.
In addition, the company has secured a US$ 5.0M term sheet with a private Peruvian fund in exchange for a 10% ownership position in CDPR’s Santander subsidiary.
The company added that the purpose of the financing and equity interest will be to strengthen the company’s balance sheet during the physical development stage of the Santander Pipe project at its Santander mine in Peru.
CEO Guy Goulet stated, "We are very pleased to enter into a transaction with OPUK and ARENA in addition to the equity interest in the Santander subsidiary. Our Santander mine in Peru is at a turning point in its evolution as we focus on the significantly higher-grade Santander Pipe.
“Capital support for completion of development works at Santander will bring our cash cost down to US$ 0.90 per lb. of zinc, positioning us close to the bottom quartile of the cost curve for zinc producers.”
Cerro de Pasco Resources is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru. CDPR is currently engaged in mining, developing and exploring its wholly-owned 6,000 hectare Santander mine in the highly prospective Antamina-Yauricocha Skarn Corridor, located 215 km from Lima.
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