Cerro de Pasco Resources Restructures Santander Liabilities

MONTREAL, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (CSE:CDPR) (OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Company”) announces that it has implemented measures to strengthen its consolidated balance sheet by restructuring the liabilities (the “Restructuring Plan”) at its wholly owned subsidiary Cerro de Pasco Subsidiaria del Perú SAC, owner of the Santander mine (“Santander”). Santander continues to perform safe and reliable operations on a care and maintenance basis.

As part of the Restructuring Plan, Santander has applied for a Preventive Restructuring Proceeding before the Peruvian National Institute for the Defense of Competition and the Protection of Intellectual Property (“INDECOPI”). Following review by INDECOPI, Santander has qualified for, and been granted a framework and formal space of time to reach effective agreements with recognized creditors, to ensure long-term continuity of operations.

The Company remains optimistic about its long-term prospects as it stabilizes its business following a significant drop in zinc price and reduced head-grades at Santander’s legacy El Magistral deposit.

The Restructuring Plan will enable the Company’s Santander subsidiary to restructure payables with suppliers in a controlled and orderly way and complement any potential project financing for Santander’s higher-grade Pipe Project.

Formal next steps include a detailed audit of the creditor list by INDECOPI, following which Santander will submit a restructuring plan. Once approved, the Preventive Restructuring Proceeding will conclude, and the restructuring plan will take effect accordingly. Through this process, the Company intends to achieve a uniform settlement.

Guy Goulet, CEO: “It is a good moment to draw the line, agree on terms and look ahead to a very promising new beginning for Santander. Santander is uniquely located with claims across one of the most prospective mineralized zones of Peru. The Pipe Project is shovel ready and we have completed extensive due diligence with several prospective lenders. The Peruvian regulatory framework provided is highly effective for all parties in circumstances such as ours and will enable us to return to a new era of profitable operations at Santander within a reasonable timeframe. Meanwhile, the Quiulacocha Tailings Project is also progressing well, along its own separate path.”