Lara Amends Option Agreement For Its Caninde Graphite Project In Brazil
VANCOUVER, BRITISH COLUMBIA–(Marketwired - Nov. 4, 2014) - Lara Exploration Ltd., (“Lara” or the “Company”) (TSX VENTURE:LRA) is pleased to report that it has amended the Option Agreement (“the Agreement”) on the Company’s Canindé Graphite Project in northeastern Brazil, changing the buyer to Paradigm Metals Limited (“Paradigm”), an Australian Stock Exchange listed exploration company. Under the terms of the Agreement Paradigm can earn an initial 51% interest in the Project as follows:
|Option Date 27/10/14||Payment (US$)||Exploration (US$)||Drilling (metres)|
|Within 5 days||100,000 (received)|
|Within 12 months||100,000||1,000|
|Within 24 months||100,000||1,000|
|Within 36 months||100,000||2,000,000||1,000|
Once Paradigm has earned a 51% interest it may earn an additional 19% interest (for a total of 70%) as follows:
|Option Date 27/10/2014||Payment (US$)||Exploration (US$)||Deliverables|
|Within 48 months||100,000||Prefeasibility Study|
|Within 60 months||100,000||2,500,000||Feasibility Study|
Once Paradigm has delivered a Bankable Feasibility Study, Environmental Permitting and applied for a Mining License to earn its additional 19% interest, it may earn the final 10% interest (for a total of 80%) by paying Lara US$100,000 and putting the project into commercial production within 72 months of the Option date. Lara has agreed a finder’s fee of 5% of the payments received from Paradigm, payable to the investor group that introduced Paradigm and assisted with completing the transaction.
The Canindé Graphite Project comprises 15,614 hectares of exploration licenses accessible on paved highways from the Ceará State Capital, Fortaleza. The high-grade and disseminated flake graphite occurrences are hosted within gently dipping schistose rocks and shear zones developed within a complex of felsic gneisses with local meta-sedimentary schist enclaves.
Michael Bennell, Lara´s Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a qualified person as defined by the 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. 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.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Lara Exploration Ltd.
VP Corporate Development
+1 416 703 0010