Centenario Gold Announces Acquisition of Cabot Copper-Gold Project in Newfoundland with $1.5 Million Financing

Centenario Gold Corp. has entered into a non-binding Letter of Intent to acquire a 100% interest in the Cabot Mineral Project, a prospective copper, gold and cobalt exploration asset located in Newfoundland's Baie Verte Peninsula. The acquisition represents a strategic expansion into a proven mining district with established infrastructure and ongoing development activity. The Project features two distinct mineralized zones: the Cabot Copper Zone with sampling results showing up to 7% copper content, and the Marble Cove Gold Prospect where historic sampling has returned values up to 70.38 g/t gold.

The Cabot Copper Zone demonstrates significant potential with multiple kilometre-scale mineralized trends identified in the Main Cabot VMS Zone. Copper mineralization occurs as chalcopyrite and bornite within altered volcanic and sedimentary units, indicating a robust hydrothermal system. Geophysical and soil surveys have defined five drill-ready targets, four of which remain untested by drilling or trenching. The Project's strategic location just 15 kilometers from Firefly Metals' Ming Copper-Gold Mine positions it within a rapidly developing VMS district. Firefly Metals' project hosts an estimated measured and indicated resource of 21.5 million tonnes at 1.8% copper equivalent, with additional inferred resources of 28.4 million tonnes at 2% copper equivalent according to their press release dated October 29th, 2024 available at https://www.asx.com.au.

The Marble Cove Gold Prospect represents a separate area of mineralization, with gold associated with narrow structurally controlled veins. This prospect is situated approximately 4 kilometers west and along strike from Maritime Resources Corp.'s Point Rousse Gold Project, which has produced over 200,000 ounces of gold and hosts three major mineralized trends extending 3 to 8 kilometers. The geological setting suggests potential for extension of known gold-bearing structures across the bay to the Marble Cove area.

Concurrent with the acquisition announcement, Centenario has proposed a share consolidation of up to 10:1, which would reduce the current 41.8 million shares outstanding to approximately 4.2 million shares. The company's board of directors believes this consolidation will enhance trading liquidity and improve the company's ability to raise additional capital for operations. The consolidation remains subject to approval by the TSX Venture Exchange, with the effective date to be announced in a subsequent news release.

To fund exploration initiatives, Centenario has announced a non-brokered private placement of up to $1.5 million. The offering consists of 15 million units at $0.10 per unit, with each unit comprising one common share and one-half warrant exercisable at $0.15 for 24 months. The company intends to use the net proceeds for exploration and evaluation of potential new resource projects, including the Cabot Project, and general administrative expenses. The offering is available to existing shareholders under British Columbia Instrument 45-534 available at https://www.bcsc.bc.ca, which provides exemption from prospectus requirements for certain trades to existing security holders.

Under the proposed acquisition terms, Centenario will make cash payments, issue shares, and incur exploration expenditures over a specified timeline to exercise the option to acquire 100% interest in the Project. Upon exercise of the option, Centenario will grant a 3.0% net smelter return royalty to the vendor, with provisions for partial buy-back and advanced royalty payments. The transaction includes a 3-kilometer area of influence clause applying identical royalty terms to any after-acquired properties related to the transaction. All securities issuances are subject to TSX Venture Exchange approval, and no finder's fees are anticipated in connection with the transaction.