Agreement For The Sale Of Brazilian Nickel Projects To Horizonte Minerals
January 18, 2011 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has signed a Heads of Agreement (“HOA”) for the sale of the Company’s Vila Oito and Floresta nickel laterite projects to London-listed Horizonte Minerals plc (“Horizonte”).
Under the terms of the HOA, Horizonte will issue 8.5 million new shares to Lara at a deemed value of approximately $2 million. The shares will be escrowed and subject to a minimum 12-month hold period and then a staged release according to TSX Venture Exchange standards. The sale is subject to Horizonte completing due diligence, receiving certain third-party approvals and completion of a definitive agreement.
The Vila Oito nickel laterite deposit is adjacent to and contiguous with the Araguaia resource currently being drilled by Horizonte. The Floresta target is separate and lies just to the north of Vila Oito. Details of the work completed to date on Lara’s projects are provided in the NI 43-101 compliant Technical Report “Exploration Update Araguaia Nickel Project in Pará State, northern Brazil”, dated January 20, 2010, prepared by Michael R. Bennell, Vice President Exploration of the Company, which is available on the Lara website www.laraexploration.com.
Qualified Person: 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 Standards of Disclosure for Mineral Projects and is responsible for the preparation and verification of the technical information in this release.
Horizonte is an AIM-quoted exploration and development company with a portfolio of nickel and gold projects in the Carajás District of Brazil and two major mining partners: Teck Resources Ltd., a strategic 50 per cent shareholder and AngloGold Ashanti Ltd., a JV partner on its gold portfolio. Horizonte owns 100 per cent of the advanced Araguaia nickel project, which has the potential to deliver a resource with size and grades comparable to other world-class nickel projects in northern Brazil. It is Horizonte’s intention to fast-track development and deliver a NI 43-101 compliant nickel resource in Q1 2011.
Lara is an exploration company following the prospect generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and then exploring them in joint ventures funded by partners. The Company currently holds a diverse portfolio of prospects and deposits in Brazil, Peru, Colombia and China, with eight in actively funded joint ventures. 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 – CEO, or Andre Gauthier – President, at +1 604-669-8777.
Chris MacIntyre – +1 416 346-7660
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.