Cerro de Pasco Resources Inc. Announces Execution of Settlement Agreement with Trevali Monitor

Rhea-AI Summary

Cerro de Pasco Resources (OTC:GPPRF) entered a settlement with Trevali and the court-appointed Monitor resolving arbitration over the 2021 Santander Mine purchase. The Monitor will seek court approval on December 16, 2025. Under the signed Settlement, CDPR will pay CAD 2,000,000 within 10 days of the arbitrator’s termination order and, after court approval, the parties will instruct termination of the arbitration and release the CAD 700,000 security for costs.

Following approval, CDPR will remove Trevali-related liabilities of USD 4,084,164 from its balance sheet (purchase price payable USD 1,584,164 and contingent consideration USD 2,500,000), which the company says is expected to produce a material gain on settlement.

Positive

• Settlement removes Trevali-related liabilities of USD 4,084,164
• Agreement produces an expected material gain on settlement in financial reporting
• Resolved arbitration risk following planned joint termination and release of CAD 700,000 security

Negative

• CDPR must pay CAD 2,000,000 within 10 days of arbitrator termination order
• Settlement is subject to court approval at the Supreme Court of British Columbia on December 16, 2025
• Each party bears its own legal costs and will split remaining arbitrator fees, creating immediate cash outflows

MONTRÉAL, Dec. 12, 2025 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (“CDPR” or the “Company”) announces that it has entered into a settlement agreement (the “Settlement Agreement”) with FTI Consulting Canada Inc., in its capacity as court-appointed monitor of Trevali Mining Corporation (the “Monitor”), and with Trevali Mining Corporation (“Trevali”), resolving all claims and counterclaims in the arbitration relating to the Share Purchase Agreement for Trevali Peru S.A.C. and the Santander Mine (the “Settlement”).

The Settlement is subject to court approval, as Trevali remains in creditor protection under the Companies’ Creditors Arrangement Act. The Monitor is bringing an application in the Supreme Court of British Columbia set to be heard December 16, 2025 for approval of the Settlement.

Background

As disclosed in the Company’s financial statements, CDPR recorded a purchase price payable and a contingent consideration payable associated with the 2021 acquisition of the Santander Mine. These amounts have been the subject of a dispute between CDPR and Trevali, as previously disclosed. In December 2024, the Monitor commenced arbitration proceedings related to this dispute. CDPR responded to the claim in February 2025 and brought a counterclaim seeking to set off any amounts found to be due and owing to Trevali against losses incurred by CDPR in relation to the Santander Mine acquisition.

Settlement Summary

Under the terms of the signed Settlement:

• Following court approval, the parties will jointly instruct the arbitrator to terminate the arbitration and release the CAD 700,000 security for costs back to the Monitor.
• CDPR will pay CAD 2,000,000 in full and final settlement of all claims brought by Trevali and the Monitor, within 10 days of the issuance of the arbitrator’s termination order.
• All claims and counterclaims between the parties will be mutually released.
• Each party will bear its own legal costs and both will share equally any remaining arbitrator fees.

The Company believes this resolution is an important step in advancing its strategic objectives and focusing fully on its core operations and development initiatives.

Strengthening CDPR’s Financial Position

After court approval, CDPR will eliminate all Trevali-related liabilities recorded on its balance sheet, including a purchase price payable of USD 1,584,164 and a contingent consideration payable of USD 2,500,000 as disclosed in the Company’s financial statements. The removal of these items represents a total reduction of USD 4,084,164 and is expected to result in a material gain on settlement when reflected in CDPR’s financial reporting.

Management Commentary

“We are pleased to have reached a definitive resolution that removes the remaining exposure associated with the historic Trevali transaction,” said Guy Goulet, CEO of CDPR. “This settlement, once approved by the court, provides clarity for all parties involved and allows the Company to move forward with a clear focus on advancing our core projects in Peru.”

About Cerro de Pasco Resources

Cerro de Pasco Resources is focused on the development of its one hundred percent owned El Metalurgista mining concession in central Peru. The concession 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 supporting sustainable development.

CDPR is committed to advancing Quiulacocha as a model for responsible tailings reprocessing, environmental remediation, and sustainable value creation in Peru.

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

Forward-Looking Statements and Disclaimer

Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “will be”, “expected” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements, including but not limited to statements the Corporation’s objectives, goals or future plans, exploration results, potential mineralization, estimates of mineral resources, cost estimates, the timing of governmental authorizations and the expectations of the Corporation’s management regarding the timing of court approval for the Settlement, are based on the Corporation’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 the Corporation to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. 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. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Corporation will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

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

FAQ

What did Cerro de Pasco (GPPRF) agree to pay Trevali in the December 2025 settlement?

CDPR agreed to pay CAD 2,000,000 in full settlement, payable within 10 days of the arbitrator’s termination order.

When is the court hearing on the Trevali settlement for Cerro de Pasco (GPPRF)?

The Monitor is seeking court approval in the Supreme Court of British Columbia on December 16, 2025.

How will the Trevali settlement change Cerro de Pasco’s (GPPRF) balance sheet?

After court approval CDPR will eliminate Trevali-related liabilities totaling USD 4,084,164, removing a purchase price payable of USD 1,584,164 and contingent consideration of USD 2,500,000.

Does the settlement end the arbitration between Cerro de Pasco (GPPRF) and Trevali?

Yes — following court approval the parties will jointly instruct the arbitrator to terminate the arbitration and mutually release all claims and counterclaims.

Will Cerro de Pasco (GPPRF) recover the security for costs in the Trevali dispute?

The signed Settlement provides for the CAD 700,000 security for costs to be released back to the Monitor after the arbitrator is instructed to terminate the arbitration.