Lara Exploration Ltd.: Sergipe Potash And Canindé Graphite Option Agreements Terminated
VANCOUVER, BRITISH COLUMBIA–(Marketwired - Nov. 17, 2015) - Lara Exploration Ltd., (“Lara” or the “Company”) (TSX VENTURE:LRA) reports that the option agreement signed in June 2012 with Aguia Resources Ltd. (“Aguia”), to acquire a 100% interest in the Company’s Sergipe Potash Project and the option agreement signed in October 2014 with Paradigm Metals Ltd. (“Paradigm”), to earn an 80% interest in the Company’s Canindé Graphite Project, have been terminated by the respective partners. Both projects are located in northeast Brazil.
Aguia was unable to complete its drilling commitment on the Sergipe Project and elected instead to pay Lara US$400,000 in cash, issue to Lara 11,000,000 common shares of Aguia (that Lara has subsequently sold) and to terminate its option. The Company has elected to relinquish these mineral rights, considering the project unfeasible in the current pricing environment for potash.
Paradigm completed eight shallow drill holes on the Canindé Project, with the best intersection returning 13.69 metres averaging a grade of 18.38% graphitic carbon, from diamond core drilling at the Pedra Preta target (see Company news release of May 20, 2015 for details). Paradigm also completed laboratory-scale graphite recovery tests at SGS Geosol Laboratorios Ltda. (Belo Horizonte, Brazil), on high-grade and low-grade samples, achieving good recoveries from the high-grade sample. The Company is reviewing the work completed by Paradigm.
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 National Instrument 43-101 Standards of Disclosure for Mineral Projects and has approved the technical disclosure and verified the technical information in this news 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, Paraguay, Peru, Colombia and Chile. 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.
Lara Exploration Ltd.
VP Corporate Development
+1 416 703 0010