Centurion Provides Ana Sofia Operational Update and Initiates Assessment of Strategic Alternatives
NEWS RELEASE
CENTURION PROVIDES ANA SOFIA OPERATIONAL UPDATE AND INITIATES
ASSESSMENT OF STRATEGIC ALTERNATIVES
Vancouver, B.C., April 1, 2019 - Centurion Minerals Ltd. (CTN: TSX-V) ("Centurion", or the
"Company") wishes to update investors on current activities:
ANA SOFIA UPDATE
The Company’s Ana Sofia Agri -Gypsum Project (“Ana Sofia”), continues to be plagued by
unfavorable external market conditions. Initially it was extreme weather conditions that reduced
demand and currently it is severe economic conditions , specifically credit markets and inflation
that have severely restricted the agriculture industry’s ability to access credit.
The Company does not anticipate much activity in the industry until such time as the market for
fertilizers normalizes and the availability of credit returns. The Company and its partner, Demetra
Fertilizantes (“DFSA”) anticipate both issues will be resolved within 2019. In the interim, the
Company has taken steps to reduce the Ana Sofia overhead and the project is on standby mode
while it continues to pursue the following initiatives:
1) The 7,500 tonnes purchase order from a Paraguayan distributor remains committed (see
news releases dated September 12, November 14, and December 24, 2018) and regular
communication is occurring between DFSA and the distributor . Agronomists responsible
for overseeing gypsum application with the underlying agricultura l client continue to
delay applications until local conditions have improved.
2) Due to the ongoing currency crisis in Argentina, credit markets remain muted. DFSA has
received multiple inquiries from Argentine distributors interested in supplying agri-
gypsum fertilizer to their clients provided DFSA extends 90 to 120-day credit facilities to
the underlying clients. Given the uncertainty related to inflation rates in Argentina, DFSA
is not able to provide, or secure such credit facilities. As such, DFSA is continuing to work
with distributors to identify clients with an ability to pay in a temporary credit-constrained
economy.
"The Company is committed to ensuring the Ana Sofia project can be restarted immediately upon
an improvement in the fertilizer and credit markets. In the interim we have been actively seeking
strategic alternatives to revalue the Company. " said David Tafel, President and Chief Executive
Officer of Centurion.
Suite 520 - 470 Granville Street
Vancouver, BC Canada V6C 1V5
Tel: (604) 484-2161
Fax: (604) 683-8544
www.centurionminerals.com
STRATEGIC ALTERNATIVE REVIEW:
The Board of the Company has initiated a strategic review of its current operations and corporate
direction and intends to leverage the deep relationships that have been developed through its
operations in Argentina, Paraguay and Uruguay.
Several cannabis and hemp producers in Argentina and Uruguay have contacted the Company as
it relates to its OPTAMAGRO division and the application of its fertilizers to field grown and
greenhouse cannabis and hemp production. The Company has retained an independent
agronomist and legal counsel to commence planning related to the application of the
OPTAMAGRO product and a detailed review of Argentine and Uruguayan laws regarding medical
and recreational cannabis.
Additionally, a select group of South American cannabis and hemp producers have approached
the Company to consider a greater and possibly direct involvement in their operations, and the
Company is currently evaluating their businesses. Management has also held preliminary
discussions with Provincial regulators to investigate the possibilities of the Company expanding
into direct cannabis production.
ABOUT THE ANA SOFIA PROJECT
The Project includes an agri -gypsum mine and complete processing facility having a current
design capacity of 4,000 tonnes/month. Gypsum is extracted from near -surface, flat-lying beds
within the sedimentary formation that extends throughout the Ana Sofia Property, located in
Santiago del Estero Province, Argentina. The plant is designed to produce a pellet-sized granular
product and a fine powder product (comprised of a minimum 85% gypsum content) that are each
packaged into one tonne tote bags. Agricultural gypsum (calcium sulfate dihydrate) is a valuable
plant nutrient and plays a vital role in maintaining soil structure and nutrient balance in South
American soils, resulting in enhanced crop yields.
The Project comprises two mining concessions totalling 50 hectares (ha) in size within a larger
(approximately 600 ha) exploration permit area. The Project is well situated within a region
where other small producers are currently extracting agricultural gypsum and selling to fertilizer
distributors and farmers. An initial inferred gypsum resource for the Project was estimated (news
releases – October 31, 2016 and December 16, 2016) to comprise 1.47 million tonnes averaging
94.1% gypsum, using an 85% cut -off grade that is the minimum required gypsum content for
commercial-quality agricultural gypsum products in Argentina.
ABOUT OPTAMAGRO
The Company’s Optamagro division is integrating its current agri-gypsum fertilizer operations
with cutting edge satellite imagery and on the ground soil testing. Optamagro intends to procure
and oversee the application of agri -gypsum, and other organic minerals, fertilizers and seeds.
Approximately 10 million hectares of agricultural land in Argentina has been adversely affected
by adverse weather patterns in the last 2 years. Several land acquisition and profit -sharing
opportunities have been identified.
ABOUT CENTURION
Centurion Minerals Ltd. is a Canadian -based c ompany with an international focus on the
development of agri -mineral fertilizer projects. For additional information on the Ana Sofia
project and applications of agri -gypsum, visit our website: www.centurionminerals.com,
including: Centurion Minerals - Twitter Account and Demetra Fertilizantes - Instagram Account
“David G. Tafel”
President and CEO
For Further Information Contact:
David Tafel
604-484-2161
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.
This news release contains 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 p roject
expectations or beliefs may be subject to certain assumptions, risks an d 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 projection s. Such statements include, among others: possible variations in mineralization, grade or recovery
rates; actual results of current exploration activities; actual results of reclamation activities; conclusions of future economic evaluations; changes
in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated; accidents and other risks of
the mining industry; delays and other risks related to construction activities and operations; timing and receipt of regulatory approvals of
operations; the ability of the Company and other relevant parties to satisfy regulatory requirements; the availability of fin ancing for proposed
transactions, programs and working capital requirements on reasonable terms; the ability of third-party service providers to deliver services on
reasonable terms and in a timely manner; market conditions and general business, economic, competitive, political and social conditions.
The Ana Sofia project has not been the subject of a feasibility study and as such there is no certainty that a potential mine will be realized or that
the processing facility will be able to produce a commercially marketable product. There is a significant risk that any production from the project
will not be profitable with these risks elevated by the absence of a compliant NI 43-101 feasibility study. A mine production decision that is not
based on a feasibility study demonstrating economic and technical viability does not provide adequate disclosure of the i ncreased uncertainty
and specific risks of failure associated with such a production decision. The Company has undertaken market research and stud ies to try to
mitigate these risks. The work carried out to date is of a preliminary nature to assist in the d etermination as to whether the mineral product is
suitable for sale and if there are markets for the mineral product. General risks inherent in the Project include the reliance on available data and
assumptions and judgments used in the interpretation of such data, the speculative and uncertain nature of exploration and development costs,
capital requirements and the ability to obtain financing, volatility of global and local economic climates, share price volat ility, estimated price
volatility, changes in equity markets, exchange rate fluctuations and other risks involved in the mineral exploration and development industry.
There can be no assurance that a forward -looking statement or information referenced herein will prove to be accurate, as actual resul ts and
future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue
reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or
information except as required by law.
The Ana Sofia mineral resource estimate is reported in accordance with the Canadian Securities Administrators National Instrument 43-101 and
has been estimated using the CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines” dated November 23rd, 2003
and CIM “Definition Standards for Mineral Resources and Mineral Reserves” dated May 10 th, 2014. Due to the relatively wide spacing of the
historical quarries and the 2016 test pits, which varies between 40 m and 300 m, the Ana Sofia 2 resource described herein is categorized entirely
as an inferred mineral resource. Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. There has been insufficient exploration to define the inferred resources as an indicate d or measured
mineral resource, however, it is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration. There is no guarantee that any part of the mineral resources will be converted into a m ineral reserve in
the future. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political,
marketing or other relevant issues.