Lara Signs Letter of Intent to Sell Corina Project in Peru to Minera Ares
23 June 2014 - 9:30PM
Marketwired
Lara Signs Letter of Intent to Sell Corina Project in Peru to
Minera Ares
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 23, 2014) - 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 Compañía 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 (from Definitive Agreement) |
|
Cash Payments |
|
Exploration Expenditures |
Definitive Agreement |
|
Within 120 days of LoI |
|
US$150,000 |
|
- |
Community Agreement |
|
Within 36 months |
|
US$150,000 |
|
- |
Drill Permit issued |
|
Triggers 3-year 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.
Lara Exploration Ltd.Chris MacIntyreVP Corporate Development+1
416 703
0010604.688.1157info@laraexploration.comwww.laraexploration.com
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