Lara Signs Option And Joint Venture Agreement On Its Araguaia Nickel Project
Lara Exploration Ltd. (“Lara” or the “Company”) is pleased to announce that an Option and Joint Venture Agreement has been reached, allowing Teck Cominco Limited’s Brazilian subsidiary, Teck Cominco Brasil S.A. (“Teck Cominco”), to earn up to a 75% interest in the Company’s Araguaia Nickel Project, Pará State, Northern Brazil.
Under the terms of the Agreement, Teck Cominco has the option to earn a 60% interest in the project by funding exploration expenditures of US$4,000,000 over a 36 month period. Teck Cominco will also pay the Company US$100,000 upon signing of the Agreement and US$500,000 upon completion of the US$4,000,000 of exploration expenditures to vest its 60% interest.
Upon earning its 60% interest, Teck Cominco shall have a one-time option to increase its interest to 75% by sole funding the next US$4,000,000 of exploration expenditures over a maximum two-year period. Once Teck Cominco has vested its interest, each party shall be obliged to fund its share of costs on a pro-rata basis in accordance with its ownership interest. In the event that either party’s interest dilutes below 10%, it will convert to a 1% Net Smelter Return Royalty.
“Our Araguaia Nickel Project is adjacent and contiguous with areas being explored by Teck Cominco, so combining the properties adds significantly to the chances of finding an economic nickel deposit,” commented Miles Thompson. “We are very pleased to have Teck Cominco as a partner.”
Michael Bennell, Lara’s Vice President Exploration and 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 and verification of the technical information in this release.
Lara is a well-funded junior exploration company with fourteen (copper-gold-nickel-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.