Network Receives TSX Approval And Completes Private Placement For Picha
December 19, 2011 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that its partner, Network Exploration Ltd. (TSX Venture: NET, “Network”), has received final approval from the TSX Venture Exchange (“the Exchange”) for the agreement to earn a majority interest in the Company’s Picha Project in southern Peru, and completed a non-brokered private placement for gross proceeds of $862,750 to fund a drilling program in the spring.
Network can earn an initial 55% interest in the Picha Project by paying Lara an aggregate of US$200,000 (of which $50,000 has been paid) issuing 3,500,000 units, with each unit comprising of one common share of Network and one non-transferable common share purchase warrant. Each warrant will entitle Lara to purchase one common share of Network at a price of $0.10 until December 7, 2013. In addition, Network must incur aggregate expenditures on the Picha Project of US$3,000,000 by December 6, 2014. Network may acquire an additional 20% interest (for a total interest of 75%) by paying Lara US$1,000,000 within 30 days of acquiring its 55% interest, then incurring expenditures of US$5,000,000 and completing a Pre-Feasibility study on the Picha Project by January 6, 2018.
The Picha Project is located within the Tertiary Volcanic Arc of Southern Peru, host to various epithermal gold-silver deposits and copper porphyry-skarn deposits. It is located adjacent to the properties of Gold Fields Limited and Compañía de Minas Buenaventura S.A., that are host to the recent Chucapaca discovery, with reported mineral resources of 7.6 million gold equivalent ounces.
Lara’s exploration work in 2010, found widespread alteration, brecciation and vein stockworking, indicative of the presence of a porphyry system at depth, and outlined seven zones with anomalous copper and associated silver values, which have been mined on a small scale in the past. In 2011, Lara completed IP and Magnetic surveys, which outlined six chargeability anomalies indicative of sulphide mineralization within a wider area of moderate chargeability and higher magnetic response interpreted as volcanic or intrusive rocks.
Andre Gauthier, Lara’s President, a member of the Quebec Order of Engineers, 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.
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 primarily in Brazil and Peru where it has signed agreements for fifteen 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 Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.