Centurion Minerals has signed a binding letter of intent (LOI) with Nicaragua-based Global Group to acquire the latter’s 50% interest in the San Cristobal gold project in Nicaragua.

Under the terms of the LOI, Centurion can earn a 50% stake in the 2,520-hectare (ha) San Cristobal Project by funding exploration and development activities at the project up to a production decision.

It also secured the right to boost its interest to 70%, subject to mutually agreed cash consideration.

Currently, Global has a 72% stake in the project. Additionally, the LOI gives Centurion the exclusive right to acquire up to a 100% interest in other concessions acquired by, or available to, Global.

The 2,520ha San Cristobal project is situated in the department of Matagalpa and is characterised by its gold-silver mineralisation within low sulphidation epithermal veins.

Centurion's exploration programme aims to build on previous studies, with a phase one programme including mapping, geochemistry, remote sensing and geophysical methods, followed by surface excavations and drilling in phase II.

Centurion president and CEO David Tafel said: “We see incredible opportunity in Nicaragua, which has a significant history of mineral development and responsible mining.

“We are looking forward to initiating a systematic exploration programme on the San Cristobal Project, which has the prospect of district-wide geological continuity from the La India gold/silver property, the same style of mineralisation and extensive presence of artisanal mining activities in the area.”

In addition to the project acquisition, Centurion has granted options to purchase 3.5 million common shares to directors, officers and consultants as per the company's share option plan.

These options are exercisable at $0.05 per share and come with vesting conditions, expiring five years from the grant date.