|October 25, 2010|
Centurion enters into Financial Partnership Agreement with IUP Permit Holder of Miwah Epithermal Gold Project
|Vancouver, B.C., October 25, 2010. Centurion Minerals Ltd. (CTN: TSX-V) ("Centurion", or "the Company") is pleased to announce it has executed a binding Letter of Agreement with PT Bayu Kamona Karya ("Kamona"), the Indonesian company which holds the Mining Business Permit (IUP) on the property that hosts the Miwah epithermal gold project in Aceh, Sumatra, Indonesia. Kamona also maintains a 15% interest in the Miwah project, which is currently the subject of an extensive drilling program being conducted by Kamona partner East Asia Minerals Corporation. |
Pursuant to this Agreement, Centurion will have the right of first refusal (RFR) to provide the necessary funding to satisfy the financial obligations associated with the Kamona IUP Property Agreements. Kamona's intention is to maintain its current 15% interest in the Miwah project and participate in any future mine development. In exchange for this funding, Centurion will receive 72% of the benefit that the IUP Holder receives both directly and indirectly from the Joint Venture Company formed with respect to the Property.
To maintain the right of first refusal, and to enable Kamona to prepare its development participation, an initial series of staged payments will be completed totaling $3.25 million, 1 million shares and 1 million warrants. Additional payments are linked to a series of milestone achievements leading up to mine construction and total up to $21 million and 2 million shares. Should a NI 43-101 technical report confirm a gold resource exceeding 10 million ounces, $5 million (cash or equivalent shares) would be awarded. The Agreement is subject to the approval of the TSX Venture Exchange.
"This Financial Partnership adds a significant potential asset that is contiguous to our existing prospective Indonesian projects and further solidifies our Aceh, Sumatra community relationships," stated David Tafel, Centurion Minerals CEO.
Centurion Minerals Limited is a Canadian-based company focused on the procurement, exploration and development of gold projects in Aceh province, Northern Sumatra, Indonesia.
On Behalf of the Board,
"David G. Tafel"
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
The TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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This news release may contain forward looking statements concerning future operations of Centurion Minerals Ltd. (the "Company"). All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
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