Centenera Mining Corp. agreed to acquire up to a 100% interest in six precious metals properties in Argentina from an arm's length party, Tres Cerros Exploraciones SRL, through three separate option agreements.
The properties hosting gold and silver deposits, namely Cerro Bayo, La Flora, Aylen, Pedro, Fiorentina and Aguila Mora, comprise a total of approximately 32,900 hectares and are all located in the highly prospective Deseado Massif in Santa Cruz province.
Under the terms, Centenera can earn an initial 80% interest in the projects and later acquire the remaining 20% stake, subject to certain royalty conditions. The aggregate acquisition cost for the first option will be US$2.9 million in cash, and Centenera shares issued to Tres Cerros with a value of US$3.7 million over a period of six years.
As part of its earn-in commitment, Centenera is required to deliver a technical report on the most advanced property on or before the sixth anniversary of the deal's effective date.
To complete the full takeover, Centenera must pay Tres Cerros US$400,000 and issue shares valued at US$400,000 for each property group — comprising Cerro Bayo and La Flora, Aylen and Pedro, Fiorentina and Aguila Mora —120 days after exercising the first option. A 0.75% net smelter royalty will be granted to Tres Cerros, two-thirds of which can be bought back for US$1 million.
According to a Sept. 5 release, Centenera is currently in negotiations with a highly experienced consultant for a review on the properties. Initial work is anticipated to focus on detailed mapping on areas allowed by exposure, ground geophysics and surface geochemistry, while specific exploration recommendations will drive the subsequent programs.