Strategic Alliance Agreed To Explore And Develop Phosphate Projects In Andean Region Of S America
October 26, 2011 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has signed a Letter of Intent (“the Agreement”) with the Kiwanda Group LLC. (“Kiwanda”), to generate, acquire and develop phosphate projects in the Andean Region of South America. Under the terms of the Agreement, Kiwanda will fund a US$1.5 million generative exploration program over three years, with US$500,000 committed in year one. Kiwanda may withdraw from the Agreement at the end of year one if Lara has not in that time generated a property suitable for the listing of a company on the TSX Venture Exchange in accordance with the Exchange’s initial listing requirements.
Once a minimum of US$150,000 has been spent on the evaluation, exploration or acquisition of a specific project, Kiwanda may either nominate it as a Designated Project or return it to Lara. Each Designated Project will be transferred into a new operating company owned equally by Lara and Kiwanda, with Kiwanda investing US$5 million over a four-year period (US$1 million of which is a firm commitment) in exploration and development of the Designated Project to raise its interest to 65%. Kiwanda may then further raise its interest to a total of 75% by delivering a Feasibility Study as defined by NI 43-101 within a further two years (subject to spending a minimum of US$2 million per year).
The proposed geographic scope of the Alliance includes Chile, Bolivia, Peru, Ecuador and Colombia, but will focus its efforts initially in Chile and Colombia. The goal of the Alliance will be to generate and acquire one or more phosphate rock projects with direct-shipping phosphate grades or mineralogical and physical characteristics that would permit a saleable concentrate to be produced. The Alliance will consider prospects of all sizes and stages, considering both local and international markets, but will ultimately seek to generate, discover or acquire a world-class deposit.
Quality Control and Qualified Person: André Gauthier, P. Eng., President of Lara Exploration Ltd., 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.
About Lara: 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. 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.