Peru-focused Cerro de Pasco Resources has entered into a project development funding agreement with the US government's development finance institution, the International Development Finance Corporation (DFC), which will provide up to $5-million in milestone-based project development funding to support defined project development activities for Cerro de Pasco's Quiulacocha tailings reprocessing project, in Peru.

Under the terms of the agreement, DFC is also considering providing up to $300-million in long-term direct loan financing to support construction of the Quiulacocha project, which Cerro de Pasco describes as one of the largest historic tailings resources globally.

The project targets the 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, Cerro de Pasco will carry out the defined project development activities, including sonic drilling, geotechnical and hydrogeological drilling, the completion of a feasibility study and engineering programme and the preparation of a comprehensive environmental- and social-impact assessment.

“This marks a pivotal moment for our company and for the Quiulacocha project. Few development stage mining projects receive direct support from the US 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 US 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 $300-million, the project now advances with a clearly defined and institutionally supported pathway,” comments Cerro de Pasco chairperson Steven Zadka.