With a New Investment, Central Puerto Becomes the Largest Shareholder of AbraSilver, Owner of the Diablillos Gold and Silver Project and Strengthens Its Presence in Mining.

Rhea-AI Summary

Central Puerto, through its subsidiary Proener S.A.U., has increased its stake in AbraSilver Resource Corp. to become its largest shareholder with a 9.9% ownership. AbraSilver, listed on the Canadian Stock Exchange, owns the Diablillos gold and silver projects in Salta and La Coipita copper project in San Juan.

AbraSilver has completed a private placement of €58.5 million to accelerate project development, focusing on completing a Feasibility Study and preparing for plant construction by 2026. The Diablillos project, fully owned by AbraSilver, is considered one of Argentina's most significant gold and silver developments.

This investment aligns with Central Puerto's diversification strategy into mining. In 2024, the company also acquired shares in 3C Lithium and partnered with YPF Luz to develop electrical infrastructure for lithium production in northwestern Argentina.

Positive

• Becomes largest shareholder (9.9%) in AbraSilver Resource Corp
• AbraSilver secured €58.5 million in financing through private placement
• Diversification into mining sector through strategic investments
• Partnership with YPF Luz for electrical infrastructure development

Negative

• None.

Insights

Investment Analyst

Central Puerto's strategic acquisition of a 9.9% stake in AbraSilver marks a pivotal transformation in its business model, extending beyond its traditional energy generation focus. This move is particularly significant for several reasons:

The Diablillos project's recent €58.5 million financing round demonstrates strong market confidence and provides important capital for advancing toward the 2026 construction timeline. The project's high-grade gold and silver reserves position it as a premium asset in Argentina's mining sector.

This investment represents a sophisticated vertical integration strategy:

• By combining energy generation expertise with mining operations, Central Puerto can potentially optimize operational costs through power supply synergies
• The partnership with YPF Luz for power infrastructure development creates a competitive advantage in the resource-rich northwestern region
• The diversification into both precious metals (gold/silver) and battery metals (lithium) provides exposure to different market cycles and demand drivers

However, investors should consider several key factors:

• The execution risk of managing multiple large-scale projects simultaneously
• Argentina's complex regulatory environment and its impact on mining operations
• The extended timeline to production, with construction not starting until 2026

The strategic timing of this investment aligns with growing global demand for both precious metals and battery materials, potentially positioning Central Puerto as a significant player in Argentina's resource sector transformation.

Buenos Aires, Argentina--(Newsfile Corp. - February 17, 2025) - Central Puerto, leader in energy generation in Argentina, through its subsidiary Proener S.A.U. expands its stake in AbraSilver Resource Corp., a company listed on the Canadian Stock Exchange and owner of the Diablillos (gold and silver) mining projects in Salta and La Coipita (copper) in San Juan. With this new investment, Central Puerto becomes the largest shareholder of AbraSilver, with a 9.9% stake.

The Diablillos project, 100% owned by AbraSilver, is one of the most relevant gold and silver developments in Argentina. The company has recently completed a successful private placement reaching a total of €58.5 million in financing, aimed at accelerating the progress of the project, with the special objective of carrying out the Feasibility Study (FS) and reaching 2026 in conditions to begin construction of the plant. In this regard, Fernando Bonnet, CEO of Central Puerto, said: "This investment reaffirms our commitment to the development of mining in Argentina and consolidates our objective of positioning ourselves as a key player in the production of precious metals. By increasing our shareholding, we support the growth of this project and contribute to the economic development of the region. Diablillos represents a unique opportunity for the region and our company, as it has high-grade gold and silver reserves and significant production potential."

Central Puerto has advanced in its diversification strategy into the mining sector with key investments in strategic projects. In 2024, it acquired a stake in AbraSilver, strengthening its presence in the precious metals sector. Subsequently, it expanded its participation in the lithium industry with the acquisition of a significant shareholding in the company 3C Lithium, owner of the Tres Cruces project in Catamarca. In addition, it launched an ambitious project to supply electricity to lithium production in northwestern Argentina, through the construction of the electrical interconnection line to the Argentine electricity system, consolidating an alliance with YPF Luz.

About AbraSilver

AbraSilver is an advanced-stage exploration company focused on advancing rapidly on its 100% owned Diablillos silver-gold project in Argentina's mining-friendly provinces of Salta and Catamarca. The current Proven and Probable Mineral Reserve estimate for Diablillos, consists of 42.3 Mt grading 91 g/t Ag and 0.81 g/t Au, containing approximately 124 Moz silver and 1.1 Moz gold, with significant additional exploration potential. In addition, the Company has entered into an option to participate a joint venture agreement with Teck in the La Coipita project, located in the province of San Juan, Argentina. AbraSilver trades on the TSX-V under the ticker symbol "ABRA" and in the U.S. on the OTCQX under the ticker symbol "ABBRF". For more information, visit the AbraSilver Resource website in www.abrasilver.com.

About Central Puerto S.A.:

Central Puerto is a leading company in the production of electricity in Argentina that has 14 generation plants of various technologies, more than 1,600 employees and reaches a 20.13% market share thanks to its operational excellence and profitability. Its mission is to produce electricity in an efficient, sustainable way and in harmony with the environment. At the same time, it seeks to contribute to the supply of demand, managing businesses in a way that creates value not only for the company, but also for society. Currently, it has an installed generation capacity of 6,703 MW. For more information, please visit: www.centralpuerto.com.

Press Contact:

Adrian Salvatore
Director of Corporate Affairs Cel.
+54 11 43175027
Adrian.salvatore@centralpuerto.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241215

FAQ

What percentage stake does Central Puerto (CEPU) now own in AbraSilver?

Central Puerto now owns a 9.9% stake in AbraSilver, making it the company's largest shareholder.

How much financing did AbraSilver secure in its recent private placement?

AbraSilver completed a private placement reaching €58.5 million in financing.

When is the Diablillos project expected to begin plant construction?

The project aims to begin plant construction in 2026, following completion of the Feasibility Study.

What other mining investments has CEPU made in 2024?

In 2024, Central Puerto acquired shares in 3C Lithium, owner of the Tres Cruces project in Catamarca, and partnered with YPF Luz for electrical infrastructure development.

What mining projects does AbraSilver own in Argentina?

AbraSilver owns the Diablillos gold and silver projects in Salta and the La Coipita copper project in San Juan.