Capstone Completes Stage-1 of Planalto Agreement
October 25, 2022 (TSX Venture: LRA) - Lara Exploration Ltd. (“Lara”), is pleased to report that it’s partner Capstone Copper Corp. (“Capstone”) has completed the first phase of the option agreement for the Planalto Copper Project in Brazil, investing more than US$5 million in exploration expenditures to earn a 49% interest. By committing to fund phase 2, Capstone can elect to raise its interest to 51% to become the project operator by paying Lara US$400,000 and then earn a further 10% interest (to 61%) in the project by delivering a feasibility study.
About the Planalto Project:
The Planalto Copper Project covers meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type mineralization, located near Vale’s Sossego mine and Cristalino deposit and Oz Minerals’ Pedra Branca mine, in the Carajás Mineral Province of northern Brazil. Lara and Capstone now own 100% of the main Planalto Project and the Homestead discovery, subject to a 2% NSR royalty payable on any production (Lara and Capstone retain the right to purchase 50% of this royalty for a cash payment of US$2 million). Lara and Capstone have further options to acquire outright two adjacent licenses, covering northward strike extensions to the Homestead mineralization, from Mineração Tariana, site of the new Cupuzeiro discovery and Mineração Zaspir (see news releases of January 11 and March 15, 2021, for details). Lara has a staged earn-in agreement with a subsidiary of Capstone Copper Corp., (see Company news release of February 4, 2019, for details), whereby Capstone can earn up to a 70% in the Project by funding exploration, feasibility studies and electing to finance, build and manage a commercial mining operation, with Lara repaying its pro-rata share of the production financing out of cash flow.
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, Peru, and Chile. 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.