Maxy Gold Transaction Update
(TSX Venture: LRA) - Lara Exploration Ltd. (“Lara” or “the Company”) is pleased to report that it has signed a definitive Arrangement Agreement with Maxy Gold Corp. (“Maxy”; TSX Venture: MXD) providing for a Plan of Arrangement with Maxy’s shareholders whereby Lara will acquire all of the outstanding shares of Maxy at an exchange ratio of one Lara share for eight Maxy shares. Maxy has mailed an Information Circular to its shareholders in respect of their approval of the transaction being sought at a special shareholders’ meeting on December 14, 2009.
The proposed transaction brings Maxy’s successful exploration team with Andean experience and highly prospective exploration portfolio in Peru, both of which are complementary and accretive to Lara’s existing business. Additionally Maxy’s established presence in China opens up a new sphere of activity for Lara and access to both prospective acquisitions and potential joint venture partners.
Upon completion of the transaction, Andre Gauthier, President and CEO of Maxy, will join Lara’s board of directors and become President of Lara, while Miles Thompson will remain as CEO and assume the role of Chairman.
Lara is a well-capitalized prospect generator with a multi-commodity exploration portfolio in Brazil, Colombia 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, 604-669-8777.
Julia Maxwell - 604-669-8777
Chris MacIntyre – 416-640-1932
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.