Alliance Agreement Signed To Explore For Coal In Peru And Colombia
July 10, 2012 (TSX Venture: LRA) - Lara Exploration Ltd. (“Lara” or the “Company”), is pleased to report that it has completed a Definitive Agreement with the Kiwanda Mining Partners LP. (“Kiwanda”), to generate, acquire and develop coal projects in Peru and Colombia. Under the terms of the Agreement, Kiwanda will fund a US$1.8 million generative exploration program over three years, with US$600,000 committed in year one.
Miles Thompson, CEO of Lara commented: “We are looking forward to building a new coal business with Kiwanda, putting our Andean database to work on generating new opportunities and building a dedicated team to begin work in the coming months.”
Under the terms of the Agreement, 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 100% 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).
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 fifteen partnership agreements. 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.