Centenario Gold Moves to Acquire Cabot Copper-Gold Project in Newfoundland Amid $1.5 Million Financing
Centenario Gold Corp. is expanding its mineral exploration portfolio through the acquisition of the prospective Cabot Copper and Gold Project in Newfoundland's established mining district while implementing strategic financial moves to enhance liquidity and exploration funding.
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 district with established infrastructure and ongoing development activity. The transaction comes alongside a proposed share consolidation and $1.5 million private placement financing aimed at strengthening the company's financial position and exploration capabilities.
The Cabot Project covers over 48 square kilometres and features two distinct mineralized zones with significant exploration potential. The Cabot Copper Zone has demonstrated copper grades of up to 7% in samples, with five drill-ready targets identified, four of which remain untested. The project's strategic location just 15 kilometers from Firefly Metals' Ming Copper-Gold Mine positions it within a rapidly developing volcanic massive sulphide district. Historical sampling at the separate Marble Cove Gold Prospect has returned values up to 70.38 g/t Au, situated approximately 4 kilometers west of Maritime Resources Corp.'s Point Rousse Gold Project, which has produced over 200,000 ounces of gold.
Company President and CEO Doug Fulcher emphasized the project's alignment with Centenario's exploration strategy, stating it focuses on untested, high-potential targets in established mining jurisdictions. The acquisition timing coincides with favorable market conditions for copper and gold, driven by increasing global demand and price trends. The project's location in a top-tier mining jurisdiction with road access and power infrastructure reduces development risks and accelerates exploration timelines.
Concurrent with the acquisition announcement, Centenario revealed plans for a share consolidation that would reduce outstanding shares from approximately 41.8 million to 4.2 million through a maximum 10:1 rollback. The company's board believes this consolidation will enhance trading liquidity and improve the company's ability to raise additional capital. The consolidation remains subject to TSX Venture Exchange approval, with the effective date to be announced in a subsequent news release.
The company also announced a non-brokered private placement of up to 15 million units at $0.10 per unit for gross proceeds of up to $1.5 million. Each unit consists of one common share and one-half warrant, with each full warrant exercisable at $0.15 for 24 months. Proceeds from the financing will be directed toward exploration and evaluation of potential new resource projects, including the Cabot Project, along with general administrative expenses. The offering is expected to close in October 2025, subject to TSXV approval.
Under the proposed acquisition terms, Centenario would make staged cash payments, share issuances, and exploration expenditures to exercise the option for 100% ownership. The company would grant PNL Ventures a 3% net smelter return royalty upon commercial production, with options to repurchase half of the royalty within two years of production commencement. The transaction includes a 3-kilometer area of influence clause applying identical royalty terms to after-acquired properties related to the project.
The scientific and technical information contained in the announcement was reviewed and approved by independent Qualified Person Garth Graves, P.Geo., in accordance with National Instrument 43-101 standards. The company noted that historical sampling results and information regarding adjacent properties are provided for context only and require further exploration to verify results and classify resources.