Option Payment Received from Minsur for the Lara Copper Project in Peru
August 3, 2021 (TSX Venture: LRA) - Lara Exploration Ltd. (“Lara”), is pleased to report the planned start of field work and receipt of the second option payment from Minsur S.A. (“Minsur”) of US$200,000 as part of an Option and Royalty Agreement (“the Agreement”) for the Lara Copper Project signed in July 2020.
The Lara Copper Project comprises of mineral rights covering a partly defined copper-molybdenum porphyry deposit, located in the Laramate Province of the Ayacucho Department, approximately 40km inland from the town of Palpa on the Pan American Highway. The Project is registered in the name of Minas Dixon S.A., which is in turn owned 55% Global Battery Metals Ltd. (“GBML”), and 45% by Lara.
Under the terms of the Agreement, GBML and Lara have granted Minsur an exclusive option to acquire a 100% interest in the Lara Copper Project by making staged cash payments of US$5.75 million to Minas Dixon S.A. on the satisfaction of various milestones, and with each of GBML and Lara retaining a 0.75% net smelter royalty. Payment milestones for the Agreement are summarized in the following table:
| Milestone/Date | Option Payment | Status |
|---|---|---|
| Upon Registration of the Agreement before Public Notary | US$59,000 | Received |
| One year from Registration of Agreement | US$200,000 | Received |
| Approval of Environmental Study and Start of Work (“DIA-IA”) | US$200,000 | |
| One year from approval of the DIA-IA | US$300,000 | |
| Approval of Semi-Detailed Environmental Study (“EIA-SD”) | US$500,000 | |
| One year from approval of the EIA-SD | US$1,500,000 | |
| Upon transfer of Title | US$3,000,000 | |
| Total | US$5,759,000 |
Minsur is expected to start fieldwork at the Lara project this month, including:
- Detailed relogging of 7,345 meters from 27 diamond drill holes
- Review of 2,504 meters from 23 RC drill holes (dependent on the state of the RC rock chips)
- Detailed geological mapping of 1,800 hectares
- Geophysics
Permitting is also underway for a drilling campaign that is targeted to commence in Q2-2022, once the permit has been approved.
About Lara Exploration
Lara is an exploration company following the Prospect and Royalty Generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and exploring them in joint ventures funded by partners, retaining a minority interest and or a royalty. The Company currently holds a diverse portfolio of prospects, deposits and royalties in Brazil and Peru. Lara’s common shares trade on the TSX Venture Exchange under the symbol "LRA".
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.
For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com, or contact Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.