Centenera Mining Corp. inked a binding letter of intent with an arm's length vendor, pursuant to which it secured an exclusive option to acquire a 100% interest in the Huachi copper-gold porphyry deposit in Argentina.

The project comprises 32 mining claims covering 462 hectares, according to a Jan. 23 release.

Under the terms, Centenera is required to make staged payments totaling US$2.3 million and issue US$500,000 in shares by Dec. 15, 2022.

The project is subject to a 2% net smelter return royalty, 0.5% of which can be repurchased by Centenera for US$1.0 million.

Upon completion of satisfactory due diligence by the company and receiving regulatory approvals, the parties will enter into and execute a definitive property option agreement.

The company will initially focus on exploration of the copper-gold porphyry deposit and the extensive open ground to the west, targeting a large-scale, bulk-tonnage copper-gold porphyry deposit.

During the option period, Centenera will be responsible for maintaining the exploration concession and permits in good standing.