Lara Completes $1,275,000 Private Placement
Vancouver, British Columbia, October 2, 2007 (TSX Venture: LRA) - Lara Exploration Ltd. (“Lara” or the “Company”) is pleased to announce that it is has completed the previously announced non-brokered private placement financing (the “Private Placement”) of $1,275,000 by the issuance of 1,500,000 units at $0.85 per unit to Global NR Holding NA, a Luxembourg based holding company which is controlled by the Lundin Family.
Each unit consists of one common share (a “Share”) and one- non-transferable, Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire an additional Share at a price of $1.20 per share for a period of two years from the closing of the Private Placement. If, at any time after the four month restricted resale period for the Units (and any Shares issuable on the exercise of the Warrants), the closing price of Lara’s common shares is above $1.70 for 20 or more consecutive days, the Company has the right, on notice to the warrant holders, to accelerate the expiry date of the warrants to 20 business days following the date of such notice. A finder’s fee of 6.5% percent in units has been paid with respect to the Private Placement. All Shares, Warrants and any Shares issued upon exercise of the warrants including the Shares, Warrants and any Shares issued upon exercise of the warrants to the finder’s, are subject to a regulatory hold period of four months expiring on January 29th, 2008.
The proceeds of the offering will be used by Lara to advance its projects in Brazil and Peru and for general working capital and corporate purposes.
Lara is a well-funded junior exploration company with fourteen (copper, gold, nickel and tin) 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”.
For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com or contact: Miles Thompson, President or Kim Casswell, Corporate Secretary at (604) 669-8777.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.