Lara To Raise Carbhid Coal Ownership To 19.91%
VANCOUVER, BRITISH COLUMBIA–(Marketwired - Nov. 12, 2013) - Lara Exploration Ltd. (TSX VENTURE:LRA) (“Lara” or the “Company”) is pleased to report that it has agreed to acquire an additional 6.6% interest in Carbhid S.A.S. (“Carbhid”), a Bogotá, Colombia based coal producer. In this current round of financing, Lara is investing approximately $187,000 over the next six months to take up its rights as 13.3% shareholder and to acquire those of some of the founders not participating in this round, thus raising the Company’s interest to 19.91% of the issued and outstanding shares of Carbhid.
Carbhid holds an operating contract on the Escalones Concession in the Boyacá district, where it is developing underground coal mining operations targeting thermal and metallurgical grade coal. During 2012, Carbhid completed the El Diamante inclined shaft and related reserve development, which began small-scale production for sale to a local thermo-electric power plant in mid-2013. Lara’s initial investment (see Company new release of February 20, 2013 for details) went towards completion of resource development at El Diamante and excavation of a second inclined shaft, denominated Carbhid 2, which is also now substantially complete. During the period Carbhid also completed lease agreements for an additional 30 hectares (with a corresponding increase in the coal resource potential) increasing the Escalones property to approximately 120 hectares in area.
The funds being raised by this rights issue will be invested in better marketing of the current production from El Diamante and Carbhid 2, and to develop a third inclined shaft denominated Carbhid 4, which will access the La Cisquera coal bed, which has an average thickness of 4.5 metres and that will permit Carbhid to produce more efficiently and on a larger scale going forward.
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 in Brazil, Peru, Colombia and Chile, where it has signed agreements for eleven Joint Ventures and three Strategic Alliances. Lara’s common shares trade on the TSX Venture Exchange under the symbol “LRA”.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.