Lara & Kiwanda to Sell Coal Interests to Nebo
04 December 2013 - 5:14AM
Marketwired
Lara & Kiwanda to Sell Coal Interests to Nebo
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 3, 2013) - Lara
Exploration Ltd. (TSX-VENTURE:LRA) and privately held Kiwanda Mines
(NA) LLC of Lake Oswego, Oregon have entered into a letter of
intent with Nebo Capital Corp. of Vancouver, British Columbia
whereby Nebo will acquire the interests of Lara and Kiwanda in
certain coal properties and assets in Colombia.
The interests to be sold to Nebo, through the newly incorporated
private company, consist of:
1. A 19.91% equity interest in Carbhid SAS, a Bogota,
Colombia-based coal producer which holds an operating contract on
the Escalones concession in the Boyaca district, where it is
developing underground coal mining operations targeting thermal and
metallurgical-grade coal. During 2012, Carbhid completed the El
Diamante inclined shaft and related reserve development, which
began small-scale production for sale to a local thermoelectric
power plant in mid-2013. Nebo will also have the option to acquire
a 51% interest in the Escalones coal mining lease.
2. The option to acquire a 75% interest in the Pelaya
exploration prospect, in the Cesar district of northern Colombia.
The approximately 1,600-hectare Pelaya prospect lies at the
southern end of one of the principal coal-producing basins of
Colombia, covering an area not previously drill tested. The option
calls for cash payments of US$ 3.8 million payable over five
years.
3. A 100% interest in Andean Coal Alliance (BVI) Ltd, a company
incorporated in the British Virgin Islands and owned by Lara (50%)
and Kiwanda (50%).
Lara understands that Nebo will, subject to shareholder
approval, concurrently with the acquisition, consolidate its common
shares on a 3:1 basis, change its name and complete a private
placement for gross proceeds of a $4,000,000 to $6,000,000 through
the issuance of subscription receipts (to acquire units, each
consisting of one post-consolidated common share and a warrant to
acquire a further post-consolidated common share). Under the sale
Nebo will issue 10,000,000 post consolidated common shares at a
deemed price of C$ 0.50 per share, representing a deemed
acquisition value of $5,000,000.
Lara understands that Nebo currently has 2,320,000 common shares
issued and outstanding and options to acquire 250,000 common shares
outstanding. Following its 3:1 share consolidation, closing of the
acquisition and the completion of the maximum amount of the private
placement, it is expected that Nebo will have approximately
20,783,333 post-consolidated common shares issued and outstanding
and options and warrants to acquire 10,083,333 post-consolidated
common shares outstanding.
The sale is subject to execution of definitive agreements and
receipt by Nebo of stock exchange, and possibly shareholder,
approvals. Nebo is a capital pool company and Lara understands that
Nebo intends the acquisition will constitute its qualifying
transaction.
Quality Control
Andre Gauthier, Lara's President, a member of the Quebec Order
of Engineers, is a Qualified Person as defined by National
Instrument 43-101 Standards of Disclosure for Mineral
Projects and has verified, and approved the disclosure of, the
technical information in this news release.
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, where it currently has eleven Partnership
Agreements and three Strategic Alliances, including one to explore
for copper with Antofagasta in Brazil. 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.Chris MacIntyreVP Corporate Development+1
416 703 0010www.laraexploration.com
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