Cerro de Pasco Resources Enters Project Development Funding Agreement with U.S. International Development Finance Corporation for Quiulacocha

Rhea-AI Summary

Cerro de Pasco Resources (OTCQB: GPPRF) entered a Project Development Funding Agreement with the U.S. International Development Finance Corporation (DFC) dated March 2, 2026.

DFC will provide up to US$5 million in milestone-based development funding and is considering up to US$300 million in potential long-term construction financing, subject to due diligence and approvals. The PD Activity covers drilling, a feasibility and engineering program, and an Environmental and Social Impact Assessment, with CDPR matching funds 1:1 for applicable workstreams.

Positive

• Up to US$5M milestone funding from DFC for project development
• Potential US$300M long-term construction financing under consideration
• 1:1 matching funds commitment aligns company and DFC incentives
• Feasibility study and ESIA funded components increase project de-risking

Negative

• US$300M financing is conditional and not guaranteed
• Reimbursable disbursements create repayment obligations if qualifying financing occurs
• Company must provide matching funds, increasing near-term cash requirements

MONTRÉAL, March 02, 2026 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (TSXV: CDPR) (OTCQB: GPPRF) (BVL: CDPR) announces that it has entered into a Project Development Funding Agreement (the “Agreement”) with the U.S. International Development Finance Corporation (“DFC”), the development finance institution of the United States Government.

Under the Agreement, DFC will provide up to US$5 million in milestone-based project development funding to support defined project development activities for the Quiulacocha Tailings Reprocessing Project in Peru. In addition, the Agreement states that DFC is considering the possibility of providing up to US$300 million in long term direct loan financing to support construction of the Project. Any such financing would be subject to, among other things, completion of the PD Activity, satisfactory due diligence, internal credit approvals and execution of definitive financing documentation. There can be no assurance that any such financing will be approved or provided.

Quiulacocha is considered one of the largest historic tailings resources globally. The Project targets recovery of silver and base metals together with gallium and indium, strategic technology metals essential to advanced semiconductors, energy systems and defense applications.

Pursuant to the Agreement, CDPR will carry out the defined project development activities (the “PD Activity”), which include Sonic Drilling, Geotechnical and Hydrogeological Drilling, completion of a Feasibility Study and Engineering program, and preparation of a comprehensive Environmental and Social Impact Assessment (“ESIA”), as further described in the PD Implementation Plan. DFC’s funding will support defined components of the PD Activity, with CDPR contributing matching funds on a 1:1 basis for the applicable workstreams.

This support from DFC marks a significant milestone in advancing the long-term potential of a world class multi metal and environmental remediation project and establishes a structured framework for the PD Activity. The Agreement also creates a defined framework under which DFC may consider potential future support beyond the development stage.

Steven Zadka, Executive Chairman of CDPR, stated:

“This marks a pivotal moment for our Company and for the Quiulacocha Project. Few development stage mining projects rarely receive direct support from the U.S. Government through a structured project development facility of this scale. Quiulacocha combines significant silver and base metals with strategic technology metals in one of Peru’s most historic mining districts.

The United States and Peru have recently strengthened cooperation around secure and responsible mineral supply chains, and we believe Quiulacocha aligns naturally with that evolving framework. With DFC providing development funding and evaluating potential construction financing of up to US$300 million, the Project now advances with a clearly defined and institutionally supported pathway.”

The PD Facility provides for reimbursable disbursements tied to defined technical deliverables. If the Project proceeds to a qualifying financing event within the agreed term, DFC would be entitled to reimbursement of disbursed development funds in accordance with the Agreement and retains certain financing rights during that period.

About Cerro de Pasco Resources

Cerro de Pasco Resources Inc. is focused on the development of its one hundred percent owned El Metalurgista mining concession in central Peru, which hosts silver rich tailings and stockpiles accumulated over more than a century of mining. The Company’s strategy is to reprocess and remediate historic mining waste, unlocking value while advancing environmental remediation and sustainable development.

For more information, please visit www.pascoresources.com.

Further Information

Guy Goulet, CEO
Telephone: +1 579 476 7000
Mobile: +1 514 294 7000
Email: info@pascoresoures.com

Donna Yoshimatsu, Senior Strategic Advisor / Investor Relations
Mobile: +1 416-722-2456
dyoshi@pascoresources.com

Forward Looking Statements

Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified using forward-looking terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely”, “scheduled” 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 (i) the anticipated use of proceeds, timing, scope and completion of the project development activities contemplated by the Project Development Funding Agreement with the U.S. International Development Finance Corporation (“DFC”), including sonic drilling, geotechnical and hydrogeological drilling, completion of a feasibility study and engineering program, and preparation of an environmental and social impact assessment (“ESIA”); (ii) CDPR’s ability to satisfy applicable milestones, technical deliverables and other conditions under the agreement, and the timing and amount of any milestone-based disbursements thereunder, including CDPR’s ability to provide required matching funding; (iii) DFC’s evaluation of, and the possibility of, providing up to US$300 million in long-term direct loan financing for construction of the Quiulacocha Tailings Reprocessing Project (the “Project”), and any timing, terms, conditions, due diligence, approvals or other requirements related thereto; (iv) the advancement of the Project through development, permitting, financing and construction stages; (v) the potential for the Project to recover silver, base metals, gallium and indium, and the potential economic, technical, environmental and remediation benefits of tailings reprocessing; and (vi) the occurrence of any future financing event that could result in reimbursement of disbursed development funds and the exercise of any financing-related rights by DFC, 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, that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risk factors set out in CDPR’s public documents, available on SEDAR+ at www.sedarplus.ca. 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.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

FAQ

What funding did Cerro de Pasco Resources (GPPRF) secure from DFC on March 2, 2026?

The company secured up to US$5 million in milestone-based project development funding. According to the company, DFC will fund defined PD Activity components while CDPR will contribute matching funds on a 1:1 basis for applicable workstreams.

Does the DFC agreement guarantee the US$300 million construction loan for GPPRF's Quiulacocha project?

No, the US$300 million is under consideration and not guaranteed. According to the company, any loan would require completion of PD Activity, satisfactory due diligence, internal credit approvals, and definitive financing documentation.

What project development activities will DFC funding support for Quiulacocha (GPPRF)?

DFC funding supports sonic, geotechnical and hydrogeological drilling, a feasibility and engineering program, and an ESIA. According to the company, these deliverables are tied to reimbursable disbursements under the PD Implementation Plan.

How does the 1:1 matching requirement affect Cerro de Pasco Resources' (GPPRF) cash needs?

CDPR must match DFC-funded work on a 1:1 basis, increasing near-term capital requirements. According to the company, matching funds apply to applicable workstreams within the PD Activity, impacting project cash planning.

What minerals does the Quiulacocha project target and why does that matter for GPPRF?

Quiulacocha targets silver, base metals, gallium and indium, which are critical to technology supply chains. According to the company, recovered metals include strategic technology metals for semiconductors, energy systems and defense uses.

What repayment or financing rights does DFC retain under the PD Facility for GPPRF's project?

DFC can seek reimbursement of disbursed development funds if the project reaches a qualifying financing event within the agreed term. According to the company, DFC also retains certain financing rights during that period.