Mining Company Advances Massive Tailings Reprocessing Project in Peru

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Cerro de Pasco Resources Inc. (CDPR:TSXC; GPPRF:OTCQB; N8HP:FSE) announced it has successfully qualified for an upgrade from the OTCQB Venture Market to the OTCQX Best Market, according to an April 29 release.

Starting that day, the company's shares began trading on the OTCQX under the ticker symbol CDPMF, marking a significant step in the company's growth strategy by enhancing its visibility and accessibility to U.S. investors and broadening its reach to institutional capital.

"Graduating to the OTCQX Best Market enhances our visibility among U.S. investors and broadens our access to institutional capital," said Chief Executive Officer Guy Goulet. "This step is consistent with our strategy to strengthen our presence in the global capital markets as we advance the development of our flagship asset in Peru."

The OTCQX Best Market represents the highest tier of the OTC markets in the United States, catering to established, investor-focused companies both in the U.S. and internationally, the company noted. To be eligible for trading on this prestigious platform, companies must meet stringent financial reporting standards, adhere to best practices in corporate governance, and comply with relevant securities laws.

In addition to its new listing on the OTCQX, Cerro de Pasco Resources will maintain its listings on other major exchanges.

Cerro de Pasco Resources is primarily engaged in the development of the El Metalurgista mining concession, which includes the Quiulacocha tailings located in central Peru. The company said its approach not only focuses on metals recovery but also on environmental remediation, aiming to reprocess one of the world's largest mineral assets in a sustainable manner.

Agreement Gives Co. Access to Investigate Project

In March, the company announced it had achieved a significant advancement in its Quiulacocha Tailings Reprocessing Project by entering into an access and investigation agreement with Activos Mineros S.A.C. (AMSAC), a Peruvian state-owned entity tasked with remediating legacy mining environmental liabilities. This agreement grants CDPR surface access to the entire Quiulacocha Tailings Storage Facility, including areas that extend beyond the boundaries of CDPR’s El Metalurgista concession. This development marks a pivotal transition into the next phase of the project, the company said.

The collaboration with AMSAC is strategic, enhancing the project’s development pathway by providing CDPR with comprehensive access across the entire tailings area. This will facilitate a more coordinated and extensive development approach. The agreement specifically covers surface access, operational coordination, and drilling activities, which complements CDPR’s existing rights over a significant portion of the tailings area.

Under the terms of the agreement, CDPR said it is authorized to carry out a wide-ranging technical program. This includes resource and definition drilling, geotechnical and hydrogeological drilling, surface and subsurface geophysical surveys, environmental baseline studies and monitoring programs, and the installation of instrumentation and data collection systems. Additionally, CDPR will have access to historical technical and environmental datasets.

These activities are intended to lay the groundwork for a future mineral resource estimate and feasibility studies, Cerro de Pasco said. They are also critical for the preparation of a comprehensive Environmental Impact Assessment (EIA) for the project.

CDPR said it anticipates beginning drilling activities in the upcoming months, with initial programs slated for mid-2026, pending standard permitting and operational planning. Furthermore, to facilitate these developments, CDPR plans to file a new reprocessing application with the mining agency to obtain the necessary sectorial authorization to commence the preparation of the EIA.

Analyst: Stepping Up to the Major Leagues

Writing for The Silver Advisor on April 29, Senior Analyst Ted Butler reported that Cerro de Pasco is ascending in the financial markets, having recently transitioned from the OTCQB Venture Market to the OTCQX Best Market, which represents the pinnacle of OTC Markets in the United States. This move is akin to stepping up from the minor leagues to the major leagues in terms of U.S. equity markets, with the OTCQX hosting companies that meet the most stringent financial reporting standards, Butler wrote.

This upgrade significantly extends CDPR’s visibility and access to U.S. institutional investors, a key demographic given the company's possession of one of the world’s largest above-ground mineral assets. For current shareholders, the transition is seamless as CDPR continues to trade under the symbol CDPMF but now enjoys increased visibility in the most liquid OTC tier.

CDPR’s shares are now concurrently listed on four exchanges: the TSXV, OTCQX, the Lima Stock Exchange, and the Frankfurt Stock Exchange, providing the company with a robust global reach.

This upgrade comes at a strategic time as CDPR is progressing the Quiulacocha tailings project towards a critical development phase, Butler said. Recently, the company achieved a significant milestone by securing comprehensive access to the Quiulacocha tailings area, which enables extensive drilling, geophysical surveys, and environmental studies. With enhanced market visibility, expanded access to institutional capital, and a presence on four global exchanges, CDPR is well-positioned for future growth.

Regarding the company's stock performance, Cerro De Pasco shares have experienced a 5% decline after the news, but Butler noted that can be attributed to a broader 2% drop in the silver price. Typically, silver mining stocks react with a 3-5x leverage to fluctuations in the silver price, which can impact companies like CDPR through external market forces. 

"Nonetheless, CDPR is advancing a tailings project that formerly belonged to J.P. Morgan himself," Butler wrote. "And while news isn’t always sexy drill results at this stage in the development phase, Peter (Krauth) and I remain steadfast in light of the low-cost and scale of CDPR’s flagship. As such, we maintain an overweight position in the stock."

Chen Lin of What is Chen Buying? What is Chen Selling? noted on April 27, "I got an oral commitment during lunch last Wednesday that all of my subscribers who participated in the previous round of financing of MCC and CDPR, who helped the company in times of difficulties, will be granted full allocation as long as it is reasonable. Others will be on the priority list." However, investors needed to meet an April 23 deadline, he said.

Eric Sprott bought another 4+ million shares of CDPR.v from the market, according to filings.

The Catalyst: A Worldwide Issue

Nicholas LePan, in an article for Elements dated May 15, 2021, delved into the environmental repercussions of mining, with a particular focus on mining waste known as tailings. These byproducts are typically stored in dams or ponds across the globe. Drawing on information from the International Council on Mining and Metals, the United Nations Environment Programme, and Principles for Responsible Investment, LePan pointed out that there are around 8,500 tailings storage facilities worldwide, whether active, inactive, or closed. These facilities hold approximately 217 cubic kilometers of tailings, enough to form a cube with sides measuring 6 kilometers.

A study by Market Research Future assessed the economic landscape of the Mining Tailings Management Market, which was valued at US$11.74 billion in 2024. It is expected to slightly increase to US$12.23 billion in 2025 and then jump to US$18.36 billion by 2035, with a compound annual growth rate (CAGR) of 4.15% from 2025 to 2035. The study identified filtered tailings as the leading market segment, while thickened tailings are recognized as the fastest-growing segment, attributed to their enhanced efficiency in resource recovery.

The expansion of this market is primarily fueled by heightened environmental consciousness and regulatory demands that promote investments in eco-friendly mining practices. The report also underscored key trends and developments within the Mining Tailings Management Market, noting a significant shift towards sustainable methods and the adoption of cutting-edge technologies in the field. While North America continues to be the largest market due to its strict regulatory and environmental standards, the Asia-Pacific region is quickly becoming the fastest-growing market. This growth is driven by an increasing demand for innovative and sustainable tailings management solutions in the area.

Ownership and Share Structure¹

About 7% of the company is held by insiders and management. About 21% is held by other strategic entities, and about 11% is held by institutions. The rest is retail.

Top shareholders include 2176423 Ontario Ltd. with 16.22%, Gordaldo Ltd. with 4.99%, Steven Zadka with 4.02%, and Goulet with 1.55%.

Its market cap is CA$411.79 million with 493.39 million shares outstanding. It trades in a 52-week range of CA$0.28 to CA$0.90.