All these events of recorded history occurred within a period that was favorable for the Peruvian mining industry. Coincidentally, this was the decade ranging from 1915, year when the Pucayacu Mining Company was organized, to 1925, when J.H. Fleming died and, subsequently, the company was liquidated. As a result of the First World War, the period was characterized by high price quotations, which reached metals in the international market. By 1918, this brought about a flourishing of the mining industry, as reflected, for example, in the introduction into some Peruvian plants of a metallurgic process that revolutionized all methods known till then for copper, lead, silver and zinc ore recovery: ore concentration by flotation.

Four years later, in 1922, with an investment of fifteen million dollars, the La Oroya foundry began its operations. Its metallurgical facility, with a processing capacity of four thousand tons per day, significantly boosted the mining industry in the central region of the country.

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Despite this, by 1925, with the death of J.H. Fleming and the liquidation of the Pucayacu Mining Company, the mines that had been operating in Atacocha were declared open to claim or in a state of abandonment.

Learning of the situation, Casa Gallo Hermanos claimed, through Gerardo Diez Gallo, six mines or concessions that included a total of twenty-seven mining claims, covering fifty-four hectares (133.4 acres).

Casa Gallo was a major commercial enterprise. The company was owned by Aniceto and Sebastián Gallo Pérez and had established itself in Cerro de Pasco many years back. During the copper boom, Casa Gallo had even participated in the Fundición del Carmen's foundry operations and, later, in the mining operations in the Vinchos mines and some other mining projects in the region. However, business had been so affected by the construction of the Lima-Cerro de Pasco highway that Francisco José Gallo Diez, a young businessman and son of Sebastián, came to Peru in 1924 to assess the company's situation and, if necessary, proceed with liquidation.

Once the claims for the Atacocha mines were validated, the concessions included were Frank, Phoenix, Arda Troya, Dora, Tres Mosqueteros and Libertad. The concession holders, each with a thirty percent interest, were Aniceto and Sebastián Gallo Pérez and, each with a twenty percent interest, Gerardo and Ramón Diez Gallo.

In 1928, Casa Gallo began mining operations, including further opening of the San Gerardo and San Ramón adits, with an investment of 300,000 soles of that time. Unfortunately, the following year a major international economic crisis seriously affected the Peruvian mining industry. Many companies were forced to stop operations, in view of enormous accumulated losses. The crisis was not overcome until 1932, allowing for a gradual recovery of the mining activity starting in 1933. The production and exportation figures and the creation of new mining companies in the following years would be a reflection of that recovery process.

In view of the new situation, Francisco José Gallo Diez, who had shown an interest in Atacocha's mining operations for some years, considered that this would be a good time to create a new mining company to operate the deposits under new criteria. Seeing the relatively low ore grade, business sense dictated that hand sorting should be replaced with more productive working methods. So, in 1935, following the advice of the engineer Guillermo Jamart and others familiar with mining operations and technological advances in ore processing, Francisco José Gallo Diez began to raise the necessary capital to bring about the project.

As he had set out to do, Francisco José Gallo Diez put together the project, with the valuable collaboration of various outstanding businessmen, such as Eulogio E. Fernandini, Germán Aguirre Ugarte and Gino Salocchi. Once the initial contributions were made, he entrusted Alberto Quesada, Esq., a partner in the prestigious Romero Law Firm, with drafting the incorporation document and the by-laws of Compañía Minera Atacocha S.A. Once the draft of incorporation was put in notarial form before the Notary Public Manuel R. Chepote, the company was formerly established on February 8, 1936.

A provisional Board of Directors was immediately designated, chaired by Aniceto Gallo Pérez, and with Francisco José Gallo Diez -as acting Manager-, Gerardo and Ramón Diez Gallo and Alberto Quesada as board members.

On March 20 of that same year, the first Regular Shareholders Meeting was held. At that time, the Board of Directors of the company was designated, chaired by Gino Bianchini. Gerardo Diez Gallo, Alberto Quesada., Oscar Díaz Dulanto and Manuel B. Llosa were elected as members of the Board. Some days later, the Board of Directors designated Casa Gallo Hermanos as the legal representative of Compañía Minera Atacocha S.A. in Cerro de Pasco for all matters related to mining concessions and water rights. The engineer Oscar Díaz Dulanto was provisionally designated as Manager of the company, until April 20, 1936, when the Board of Directors agreed to appoint the engineer Edgardo Portaro Mazzetti, an outstanding professional, as Manager of the company.

Activities began by claiming and, subsequently, taking possession of nineteen mining properties, which were added to those already held at the time of incorporation. The necessary technical personnel were hired immediately in order to put the mining operation to work.

During 1936, a select group of professionals, led by Edgardo Portaro, designed the work plan to put existing mining operations into commission and to define the necessary civil works to equip the mine with all ancillary services.

Actively participating in the work and efforts required for business development, more so at a time of multiple difficulties, Francisco José Gallo Diez contributed his vision, capabilities and enthusiasm to lay the foundations of Compañía Minera Atacocha S.A., a company to which he would remain closely linked during his whole life.

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