Lara Agrees Sale Of Grace Gold Project To Aruntani S.A.C.
VANCOUVER, BRITISH COLUMBIA–(Marketwired - July 10, 2013) - Lara Exploration Ltd. (“Lara” or the “Company”) (TSX VENTURE:LRA) is pleased to announce that it has signed a Letter of Intent with Apumayo S.A.C., a subsidiary of Peruvian gold miner Aruntani S.A.C., to acquire 100% of the Company’s Grace Gold Project in southern Peru for US$2 million payable as follows:
|75,000||On signing of the Definitive Agreement|
|125,000||12 months from approval by Direccion General de Mineria for the start of activities|
|300,000||24 months from approval by Direccion General de Mineria for the start of activities|
|1,500,000||36 months from approval by Direccion General de Mineria for the start of activities|
Lara will also be entitled to Net Smelter Return (“NSR”) royalty payments on gold and gold equivalent production from all metals as follows:
|Gold (or Equivalent) Production (Troy Ounces)||Applicable|
|0 to 199,999||None|
|200,000 to 499,999||0.75||%|
|500,000 or more||1.00||%|
Aruntani and its subsidiary, Apumayo, are further committed to minimum exploration expenditures on the property of US$500,000 and the execution of a minimum of 3,000 metres of drilling within a year from granting of drilling permits. Aruntani and Apumayo are currently developing open pit mining operations for gold on epithermal deposits immediately to the south of Lara’s Grace Gold Project and which are derived from mineralized alteration zones similar to those outlined at Grace.
The Company’s 6,600 hectare Grace Project covers Tertiary-age volcaniclastics, cut by brecciated silica bodies and veins with wide quartz-alunite and granular silica halos, indicative of a well-preserved high-sulphidation epithermal system. An area of hydrothermal alteration extending approximately 6 kilometres in length by 1 to 1.5 kilometres in width, has been outlined to date, where rock chip samples have returned anomalous gold, silver, arsenic, mercury and antimony values.
Andre Gauthier, Lara’s President and 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 of the Canadian Securities Administrators, has verified the technical information and approved the form of its disclosure 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 in Brazil, Peru, Colombia and Chile, where it has fifteen Option and Joint Venture Agreements and three Strategic Alliances, including one to explore for copper with Antofagasta in Brazil. Lara’s common shares trade on the TSX Venture Exchange under the symbol “LRA”.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.