Lara Signs Letter of Intent to Sell Corina Project in Peru to Minera Ares
June 23 2014 - 7:30AM
Marketwired Canada
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 Compania 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:
----------------------------------------------------------------------------
Milestone Time Period Cash Payments Exploration
(from Expenditures
Definitive
Agreement)
----------------------------------------------------------------------------
Definitive Within 120 days US$150,000 -
Agreement of LoI
----------------------------------------------------------------------------
Community Within 36 US$150,000 -
Agreement months
----------------------------------------------------------------------------
Drill Permit Triggers 3-year - -
issued 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.
About Lara
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lara Exploration Ltd.
Chris MacIntyre
VP Corporate Development
+1 416 703 0010
604.688.1157 (FAX)
info@laraexploration.com
www.laraexploration.com
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