Lara Signs Letter Of Intent With Votorantim Metais For Canabrava
Lara Exploration (“Lara” or the “Company”) (LRA-TSX.V) is pleased to report that it has signed a Letter of Intent (“LOI”) with Votorantim Metais Zinco S.A. (“Votorantim Metais”). Under the terms of the LOI, Votorantim Metais may earn up to a 75% interest in the Company’s Canabrava VMS Project, by funding further exploration and development work on the project.
Votorantim Metais can earn an initial 55% interest in the project, by funding $2.5 million of exploration expenditures over a three year period, with $0.5 million committed in year one. It may then elect to increase its interest to 70% by delivering a Feasibility Study within a further two years. Finally, subject to agreement by Lara and a decision to construct a mine at Canabrava, Votorantim Metais may raise its interest to 75% by funding Lara’s equity cost of the mine development, on terms substantially the same as those of the debt financing.
The Canabrava VMS (volcanogenic massive sulphide) Project comprises 28,500 hectares of exploration claims and licenses that covers strike extensions of the Palmeirópolis Deposits, which are a series of zinc, lead, copper and silver sulphide ore bodies discovered by the CPRM (Brazilian Geological Survey) in the 1970’s. Lara has been gradually acquiring mineral rights along this trend over the last two years as it sees considerable potential to discover additional mineralization using modern geophysical methods and that the base metal focused exploration work of the 1970’s may have under-estimated the gold and silver potential of the district.
About Votorantim Metais
Votorantim Metais belongs to a privately held Brazilian business conglomerate that is a leader in every market segment in which it operates, including cement, pulp and paper, metals, chemicals, orange juice, and finance. In 2007, Votorantim Group’s revenues amounted to US$15.6 billion. The metals business accounted for 31% of revenues from production of zinc, nickel, steel and aluminum. Votorantim Metais is the world’s third largest primary zinc producer with three operating zinc smelters and two operating zinc mines.
About Lara Exploration
Lara is a natural resource prospect generator, with 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release