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 Cabot Project spans over 48 square kilometres and features two distinct mineralized zones. The Cabot Copper Zone has returned sampling grades of up to 7% copper, with five drill-ready targets identified, four of which remain untested. The project is strategically positioned just 15 kilometres from Firefly Metals' Ming Copper-Gold Mine, a significant mineral project with substantial resources. Additional information about the regional context can be found at https://www.newmediawire.com.
Separately, the Marble Cove Gold Prospect has yielded historic samples containing up to 70.38 grams per tonne of gold. This gold-bearing area lies approximately 4 kilometres west of Maritime Resources Corp.'s Point Rousse Gold Project, which has produced over 200,000 ounces of gold. The geological continuity suggests potential for extending known mineralized trends across the bay.
This acquisition matters because it positions Centenario to capitalize on growing copper demand driven by global electrification trends and sustained gold prices. The project's location in a developed mining jurisdiction with road access and power infrastructure reduces exploration risks and accelerates potential development timelines. The proximity to established operations like the Ming Mine provides valuable geological context and operational synergies.
Concurrent with the acquisition announcement, Centenario revealed plans for a share consolidation that would reduce outstanding shares from approximately 41.8 million to 4.18 million through a maximum 10:1 rollback. The company believes this consolidation will enhance trading liquidity and improve its ability to raise capital for future operations.
The company also announced a non-brokered private placement of up to $1.5 million, offering 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 fund exploration of the Cabot Project and other potential resource acquisitions.
Under the proposed acquisition terms, Centenario would make staged cash payments, share issuances, and exploration expenditures over several years to exercise its option for full ownership. The agreement includes a 3.0% net smelter return royalty to the vendor, with provisions for partial buyback options. All securities issuances remain subject to TSX Venture Exchange approval.
The transaction highlights the ongoing exploration potential in Newfoundland's mining districts and reflects growing investor interest in copper assets essential for renewable energy infrastructure. Successful development of the Cabot Project could contribute to regional economic development while addressing global demand for critical metals.
