News Summary
On December 15, 2025, Cerro de Pasco Resources Inc. (CDPR) announced it has signed a two-year, renewable Surface Use Agreement with the Community of Quiulacocha. This agreement provides a clear framework for the company to conduct its planned work on the Quiulacocha Tailings Project, including drilling, geotechnical studies, environmental monitoring, and engineering. The CEO, Guy Goulet, stated this agreement provides long-term stability and is the result of a collaborative relationship with the community.
Material Impact
The most recent news of a surface use agreement is a routine but positive de-risking event. While not financially material in itself, securing the social license to operate is a critical prerequisite for advancing the Quiulacocha project, especially in Peru. This step was anticipated and demonstrates management’s ability to execute on its operational timeline.
Looking at the historical context, this news fits perfectly into a sequence of positive developments:
– Q4 2024 – Q2 2025 (Drilling): The company established the potential of the Quiulacocha tailings through a 40-hole drill program, confirming consistent polymetallic grades and, notably, identifying valuable concentrations of the strategic metal Gallium.
– Q3 2025 (Corporate Transformation): CDPR successfully sold its problematic Santander mine, cleaning its balance sheet of over $70 million in liabilities. This transformed the company from a high-debt operator to a focused developer. This was a pivotal and highly positive strategic move.
– Q4 2025 (Financing & De-risking):
– November 7: The company closed a “game-changer” financing of $22.7 million at $0.48 per unit, with cornerstone investment from renowned resource investor Eric Sprott. This fully funded the company through its planned feasibility study, removing any near-term financing risk.
– December 10: CDPR provided a comprehensive project update, confirming progress on metallurgical work and noting positive resolutions from Peru’s Mining Council, clarifying the permitting path forward.
– December 12: The company settled a lingering legal dispute with Trevali for a CAD $2M payment, eliminating USD $4.08M in liabilities from its books. This further cleaned up the balance sheet and removed a potential distraction.
The December 15th social agreement is the logical and necessary next step following the financing and permitting progress. It signals that the company is methodically advancing Quiulacocha towards a feasibility study. While the market may have expected this, its successful execution is a clear positive that reduces operational risk and keeps the project on track. The impact is routine, as it’s an expected part of the development process, but it is unequivocally positive.
Catalysts
– Immediate: Final court approval for the Trevali settlement, with a hearing scheduled for December 16, 2025.
– 3-6 Months:
– Metallurgical Results (Q1 2026 Target): This is the single most important upcoming catalyst. The results will determine the potential recoveries for silver, zinc, lead, copper, and the newly identified gallium. Strong recovery rates are essential for the project’s economic viability.
– Phase 2 Drilling: Commencement of the next phase of drilling (approx. 76 more holes) to expand the drilled area and support a maiden Mineral Resource Estimate (MRE).
– Maiden Mineral Resource Estimate (MRE): Following the completion of the full 116-hole drill program, the MRE will be the first official NI 43-101 compliant tonnage and grade estimate for the project, providing a concrete basis for valuation.
Materiality Conclusion
The surface use agreement is a routine but essential step in de-risking the Quiulacocha project. It confirms management’s ability to secure community support and advance the project as planned. While not a game-changer on its own, it contributes positively to the overall investment thesis by removing a key operational hurdle.
