Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) signed a term sheet last week to advance the construction of infrastructure at its Santander Pipe project in Peru, the company announced.
The company inked the deal with China Railway N° 10 Engineering Group CO. LTD., Sucursal del Perú (CREC10), an engineering and construction company that will provide US$12 million worth of services.
CREC10, part of the Fortune 500 company China Railway Group, will provide contract mining services at the company’s Santander Mine.
Importantly, the funded construction services with CREC10 meet the requirements for additional subordinated funding, as it pertains to past team sheets the company signed in May with Ocean Partners UK Limited and Arena Investors.
The total aggregate funding is now US$29 million to US$ 32.5 million, consisting of a mix of senior debt, off-take revolver, local equity, and funded construction services.
“We are excited to enter into this Funded Construction Services agreement with CREC10,” Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) Chief Operating Officer Jorge Lozano said in a statement. “The group has an extensive track record in infrastructure projects, in both civil and mining, in Peru and globally.”
He continued: “The participation of CREC10 as well as OPUK and ARENA evidence the solidity of the information and the work we have done on the Santander Pipe project in relation to the exploration, engineering, and sustainability, all of which support our approach.”
Cerro de Pasco Resources expects to sign the CREC 10 master contract and funded construction services agreement, simultaneously with the closing of the previously announced Arena and OPUK financings, in August.
Source : Proactive