A bomb blast in a remote town of Nicaragua killed two people and injured a few after the military fired gunshots at witnesses, the Nicaraguan Center for Human Rights reports, according to Fusion.

Nicaraguan coffee farmer Modesto Duarte in Pantasma noticed two unknown men driving through the dirt roads in the three days prior to the attack.

Duarte and his son, Jadier Duarte, heard the explosion and saw strewn body parts from the backpack bomb blast when they went to see what happened.

Soldiers then fired shots in their direction shooting the 19-year-old Jadier in the leg and killing 62-year-old Modest.

A 16-year-old, Eliezer Duarte, escaped unharmed.

An hour later, 22-year-old Yader Duarte was hogtied and captured by the masked soldiers when he was on his way back from the coffee fields. He said he was interrogated at knife-point about the movements of rearmed contras, before being released at 1 a.m.

The Duarte family is the latest victim of the battle between the country's army and the alleged rearmed contra rebels said to be operating in the northern mountains of Nicaragua. The bomb was set to kill a group of rearmed contras in the region.

Yet, only two rebels were killed after the bomb exploded too early.

"Supposedly there are two to four more members of rearmed group who escaped with injuries," Pantasma Mayor Oscar Gadea said.

"The army is going on nightly patrols looking for the others. The people of Pantasma are scared. No one goes out after dark anymore."

The Nicaraguan army has denied the existence of rearmed rebels in the past, saying the rumors of the alleged rebel resurrection are just about a group of "common delinquents."

Former contra leader Oscar "Comandante Ruben" Sobalvarro estimated about 50 rearmed rebels have been killed since resurfacing in 2010, although the number cannot be verified.

He said the backpack bomb was the second military operation in the remote town in the past year.