Centenario enters LOI to option Los Reyes from Factor

Executive Summary

• Centenario Gold Corp. signed a Letter of Intent (LOI) to acquire 100 % of the Los Reyes copper‑gold project in Chihuahua, Mexico, via its subsidiary Durango Gold Corp. SA de CV.
• The LOI requires an initial cash payment of US$15,000 by Dec 31 2025 and the commencement of a minimum 1,000 m diamond drill program within six months to trigger a final purchase‑option agreement.
• Upon successful drilling, Centenario will pay the balance over five years and grant a permanent 2 % royalty on production to Vector Factor SA de CV.

Key Details

• Target Asset: Los Reyes project – two mineral concessions covering 45 ha in a high‑grade copper‑gold skarn district (Faja de Plata, north‑central Mexico).
• Initial Consideration: US$15,000 cash payable on or before 31 Dec 2025.
• Drilling Condition: Minimum 1,000 m diamond drilling to be initiated within six months of LOI execution; results must be received and evaluated within 45 days.
• Option Exercise: If drilling is deemed successful, Centenario may enter a final project purchase‑option agreement for the remaining consideration.
• Payment Structure: Remaining purchase price payable in annual installments over five years (terms not disclosed).
• Royalty: Permanent 2 % royalty on all production to be paid to Vector Factor SA de CV; Factor will forward its share to Minera Cascabel SA de CV per a prior agreement dated 11 Feb 2014.
• Exploration History: Prior 2019 Valterra Resources program included a 4.8‑km DCIP geophysical survey, surface mapping, and sampling; 22 of 28 samples showed >1 % Cu (average 3.1 % Cu) with up to 5.9 % Cu and notable Au (0.57 g/t), Ag (25.3 g/t), Mo (0.47 %) and Zn (1.7 %).
• Qualified Person: Derrick Strikland, P.Geo., NI 43‑101 qualified, reviewed and approved technical disclosure.

Notable Quotes

“We are very excited about the acquisition of the Los Reyes project; it helps to back up our decision to work on developing copper‑gold projects in North America. We are planning a drill program for the new year to test the historical information that we have on the project.” – Doug Fulcher, President & CEO, Centenario Gold Corp.