Centenera Mining Corporation announced that it has entered into a property option agreement with Yamana Gold Inc., whereby Yamana, through a subsidiary, has been granted an option to acquire an initial 70% interest in the Company’s Organullo Gold Project. Organullo is located in Salta Province, northwestern Argentina.
“Organullo is a gold exploration project that is currently 100%-owned by Centenera. The Project has the potential to host a large, bulk-tonnage gold deposit, however, significant drilling is required in order to fully investigate that potential,” stated Keith Henderson, the Company’s President & CEO. “Under the terms of the Agreement, the related expenditures will be funded solely by Yamana, potentially shielding Centenera shareholders from future dilution, while allowing them to maintain a minority interest in the Project.”
Organullo Option Terms
Under the terms of the Agreement, Yamana may exercise the Option by the (i) preparation and delivery of a Pre-Feasibility Study (“PFS”) prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) that reports an aggregate Measured and Indicated Mineral Resource of a minimum of 1,000,000 gold-equivalent ounces^ by the 6th anniversary of the effective date of the Agreement; (ii) completion of property-related expenditures of at least US $5,000,000 in the aggregate; and (iii) cash payments of US $1,250,000 in the aggregate, as follows: