Lara Sells Lampa Gold Project In Peru To Hochschild For A 2% NSR Royalty
October 15, 2012 (TSX Venture: LRA) - Lara Exploration Ltd., (“Lara” or the “Company”) is pleased to report that it has sold the Lampa Gold Project to Minera Hochschild plc (“Hochschild”; HOC – LSE), for a 2% net smelter return royalty on any production from the property. The Lampa Project comprises 4,800 hectares of exploration licenses covering gold-bearing quartz vein structures located in the Puno region of southern Peru.
Concurrently, the Company also relinquished to Hochschild, the 2,500-hectare Nicole Property, located in the Moquegua department of southern Peru. This property was acquired in 2008 from Southwestern Resources Corp., a company subsequently acquired by Hochschild, which retained the right to recover the licenses if Lara dropped them.
Andre Gauthier, President of Lara commented: “Lara’s mission is to make world class discoveries and while we see exploration potential in both the Lampa and Nicole properties, we do not see that potential and will thus focus our resources elsewhere.”
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 fourteen joint ventures and three Strategic Alliances. 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.