Centenario Gold Announces Acquisition of Cabot Copper-Gold Project in Newfoundland, $1.5 Million Financing and Share Consolidation

Centenario Gold Corp. has entered into a non-binding letter of intent to acquire a 100% interest in the Cabot Mineral Project, a copper, gold and cobalt exploration asset located in Newfoundland's Baie Verte Peninsula. The acquisition represents a strategic expansion into a proven mining jurisdiction with established infrastructure and ongoing development activity.

The Cabot Project features two distinct mineralized zones covering over 48 square kilometres. The Cabot Copper Zone has demonstrated significant potential with sampling returning grades of up to 7% copper, while the separate Marble Cove Gold Prospect has yielded historic samples containing up to 70.38 grams per tonne of gold. The project's location in a rapidly developing volcanogenic massive sulphide district, just 15 kilometres from Firefly Metals' Ming Copper-Gold Mine, provides substantial exploration upside.

Doug Fulcher, President and CEO of Centenario Gold, stated that the project aligns with the company's exploration strategy focusing on untested, high-potential targets in established mining jurisdictions. The timing coincides with favorable market conditions for copper demand and gold prices, creating an opportune moment for exploration advancement.

Concurrent with the acquisition announcement, Centenario revealed plans for a share consolidation of up to 10:1, reducing outstanding shares from 41.8 million to approximately 4.2 million shares. The consolidation aims to improve trading liquidity and enhance the company's ability to raise additional capital for operations.

The company also announced a non-brokered private placement of up to $1.5 million through the issuance of 15 million units at $0.10 per unit. Each unit consists of one common share and one-half warrant, with full warrants exercisable at $0.15 for 24 months. Proceeds will be directed toward exploration and evaluation of potential new resource projects, including the Cabot Project, along with general administrative expenses.

The transaction terms require Centenario to make staged cash payments, share issuances, and exploration expenditures to exercise the option to acquire 100% of the project. Upon exercise, Centenario will grant PNL Ventures a 3.0% net smelter return royalty on all metals produced from the project, with provisions for partial buyback options.

The strategic importance of this acquisition lies in Centenario's expansion within Newfoundland's increasingly active mining landscape. The Baie Verte Peninsula hosts multiple advanced projects, including FireFly Metals Ltd.'s Ming Copper-Gold Mine and Maritime Resources Corp.'s Point Rousse Gold Project, which has produced over 200,000 ounces of gold. The region's mining history and infrastructure provide significant advantages for exploration and potential development.

All proposed securities issuances remain subject to TSX Venture Exchange approval, and the company has indicated that no finder's fees are anticipated in connection with the transaction. The private placement includes provisions for existing shareholders under British Columbia Instrument 45-534, allowing registered shareholders to participate with certain investment limitations.

The combination of project acquisition, financing, and corporate restructuring positions Centenario to advance exploration in a district showing strong mineralization potential. The company's focus on copper and gold assets responds to growing demand for these metals, particularly copper's critical role in renewable energy and electrification technologies.