Lara Exploration Ltd.: Definitive Agreement Signed with Halston for the Coporaque Copper Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/11/12 -- Lara Exploration Ltd. (TSX VENTURE: LRA) ('Lara' or the 'Company'), is pleased to report that it has completed an Option and Joint Venture Agreement ('the Agreement'), whereby Halston Exploration Inc. ('Halston'), can earn up to a 75% interest in the Company's Coporaque Copper Project in southern Peru, by paying Lara $1.65 million in cash and shares, completing $10 million in exploration expenditures and delivering a Pre-Feasibility Study within 7 years.
Andre Gauthier, President of Lara commented: 'This is the second transaction we have completed with Halston and we're looking forward to a very active and successful exploration season with them in 2012.'
Under the terms of the Agreement, Halston has an initial option to earn a 55% interest in the Coporaque Project by investing US$3 million in exploration, paying Lara US$650,000 in cash and/or shares and completing a minimum of 2,500 metres of drilling within three years. Halston may then elect to earn an additional 20% interest by immediately paying Lara US$1 million, investing US$7 million in exploration over three years (minimum of US$1.5 million per year) and delivering a Pre-Feasibility study to National Instrument 43-101 Standards within 4 years. Halston is in the process of being acquired by Australian Stock Exchange ('ASX') listed company AXG Mining Limited (ASX: AXC) ('AXG') and will become a wholly-owned subsidiary of AXG upon settlement of the acquisition, assuming the obligations of Halston under the Agreement with Lara.
The Coporaque Project covers 7,948 hectares within the Andahuaylas-Yauri Cu-Au-Mo skarn-porphyry belt, which is host to world-class porphyries and bonanza type precious and base-metal deposits. Lara's exploration work to date has outlined an exciting porphyry Cu-Mo-Au target at Coporaque and identified rich Au-Cu veins outside of the porphyry target.
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 is responsible for the preparation and verification of the technical information in this 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 primarily in Brazil and Peru where it has signed agreements for fifteen joint ventures. 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.
Contacts:
Lara Exploration Ltd.
Chris MacIntyre
VP Corporate Development
+1 416 703 0010
info@laraexploration.com
www.laraexploration.com