Lara Agrees To Form A Strategic Alliance With Sprott Resource Corp.
Lara Exploration (“Lara” or the “Company”) is pleased to report that it has signed a Letter of Intent (“LOI”) with Sprott Resource Corp. (“SRC”) to form a Strategic Alliance (the “Alliance”) targeting phosphates, potash and other fertilizer feedstock minerals. The Alliance, which will be owned equally by Lara and SRC, aims to build on the success of the Mantaro Phosphate Project in Peru, acquired jointly by Lara and SRC in late 2007 (News Releases dated November 26, 2007 and April 30, 2008).
Under the terms of the LOI, SRC will initially seed the Alliance with up to $3,000,000 of which $500,000 will be committed in the first year and Lara will act as the operator to seek acquisitions and undertake basic exploration. Lara’s ownership is not subject to dilution in the first year and the Company may maintain its 50% interest thereafter by equal funding with SRC. If Lara elects not to fund its share of expenses, it will receive a goodwill equivalent of 50% of any funds invested by SRC, thus limiting dilution.
Miles Thompson, President and CEO of Lara says: “We appreciate this vote of confidence from Sprott Resource Corp., and their support for us to get out and target larger acquisitions. We have a number of opportunities under review and look forward to getting this program underway in the coming months”.
Lara is a well-funded natural resource prospect generator, with a multi-commodity exploration portfolio in Brazil and 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.
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