Centurion secures right to enter Aceh gold project

Canadian junior mineral explorer Centurion Minerals Ltd. Announced Monday it has executed a binding Letter of Agreement with PT Bayu Kamona Karya, the Indonesian company which holds the Mining Business Permit (IUP) on the property that hosts the Miwah epithermal gold project in Aceh, Sumatra.

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 C$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.(alex)