Progress With Nickel Exploration And Regional Data Acquisition In Brazil
Lara Exploration Ltd. is pleased to announce that it has signed an agreement with Falconbridge Brasil Ltda., now a subsidiary of Xstrata plc and managed by Xstrata Nickel, which will allow Lara to access the Falconbridge regional data covering Lara’s properties in the Araguaia Belt but outside the existing joint venture between the companies. Lara understands that Xstrata Nickel’s management is also supporting the second year work commitments on the joint venture areas, though final board approval is still pending.
Araguaia Generative Program
Lara currently holds a 100% interest in 250,000 hectares of exploration concessions in the Araguaia Belt around areas held by Falconbridge Brasil Ltda. and the existing joint venture areas between the two companies. Lara has been conducting prospecting and reconnaissance sampling work on this ground since April 2006 that has identified a number of targets.
On November 1, 2006, Lara signed a letter agreement with Falconbridge (Xstrata Nickel) whereby Xstrata Nickel will provide access to its regional airborne magnetic and radiometric surveys and photogeological interpretations covering Lara’s properties in the Araguaia belt. In exchange, Lara will issue to Xstrata Nickel a total of 15,000 units, with each unit comprising one common share and one non-transferable common share purchase warrant of Lara. Each warrant shall permit Xstrata Nickel to acquire one additional common share for the price of CDN$1.30 during a period of two years. The issuance of such units is subject to the approval of the TSX Venture Exchange.
Xstrata Nickel may earn a 70% interest in Lara’s 43,000 hectare Pará Nickel Project in the Araguaia Belt by paying US$110,000 ($ 40,000 received to date) and spending US$3.89 million on exploration by June 2009, under the terms of an agreement signed in June 2004 (Lara Press Release February 15, 2006). Prior to the takeover by Xstrata, Falconbridge completed airborne magnetic, radiometric and electromagnetic surveys, surface sampling and 661 metres of diamond drilling. The joint venture is in its second year, during which time Xstrata Nickel must invest a minimum of US$480,000 in exploration of the property. Lara has now been advised that budgets have been approved to meet this commitment.
Michael Bennell, Vice President Exploration, a member of the Australasian Institute of Mining and Metallurgy (AusIMM), is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation of the technical information in this release.
Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.
Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel) projects in Brazil and the Lara oxide copper deposit in Peru. Lara’s common shares trade on the TSX Venture Exchange under the symbol “LRA”.
On behalf of the Board
President & CEO
For further information on Lara Exploration please consult our webpage www.laraexploration.com or contact: Miles Thompson or Kim Casswell Corporate Secretary on (604) 669-8777
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.