Lara Signs Letter Of Intent To Sell Corina Project In Peru To Minera Ares
VANCOUVER, BRITISH COLUMBIA–(Marketwired - June 23, 2014) - Lara Exploration Ltd. (“Lara” or the “Company”) (TSX VENTURE:LRA) is pleased to report that it has signed a binding Letter of Intent granting an option to purchase its Corina Gold Project in southern Peru to Compañía Minera Ares S.A.C. (“Ares”), a subsidiary of London-listed Hochschild Mining plc., that operates mines nearby. Under the proposed terms, Ares can acquire the Corina property from Lara for staged cash payments totalling US$4,150,000, carrying out US$2,000,000 in exploration and paying a 2% net smelter return royalty on any future production as follows:
(from Definitive Agreement)
|Cash Payments||Exploration Expenditures|
|Definitive Agreement||Within 120 days of LoI||US$150,000||-|
|Community Agreement||Within 36 months||US$150,000||-|
|Drill Permit issued||Triggers 3-year option||-||-|
|From Drill Permit||12 months||US$350,000||US$500,000 including 3,000 metres of drilling|
|From Drill Permit||24 months||US$1,000,000||3,000 metres of drilling or payment of US$500,000 in lieu|
|From Drill Permit||36 months||US$2,500,000||At least US$1,000,000|
Ares will be the project operator, with Lara providing support with community relations until a Community Agreement is secured and thereafter on an as-needed basis. If Ares fails to secure a Drill Permit for 20 drilling sites within 12 months of signing the Community Agreement, it will pay another US$150,000 to Lara, until it obtains a Drill Permit, and on every anniversary thereafter. If Ares is unable to obtain a Drill Permit within 36 months, Lara may terminate the option.
If Ares exercises its option and acquires the Property, Lara will be granted a 2.0% net smelter return royalty on all production from the Property.
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.