VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2013) - Lara Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the "Company") is pleased to report that it has signed a Letter of Intent with Antofagasta Minerals S.A. ("Antofagasta") to enter into an Option and Joint Venture Agreement for the Company's Sami Project in southern Peru.
Under the terms of the Letter of Intent, Antofagasta can invest $6 million in exploration over four years to earn an initial 55% interest in the project, of which the first year expenditures of $500,000 would be a firm commitment. Thereafter, Antofagasta can elect to earn an additional 5% interest over two years by completing a Preliminary Economic Assessment and a further 15% (for a total of 75%) by completing a Feasibility Study within nine years. Antofagasta will be the project operator, with Lara providing continuity and support with community relations and permitting. The Letter of Intent is not binding and therefore subject to completion of due-diligence, entering into a Definitive Agreement and final approvals by Antofagasta and Lara.
The Sami Project, located in the Ayacucho and Huancavelica departments of southern Peru, comprises approximately 50,000 hectares of mineral rights. The Company has completed exploration work that has outlined 20 gold-copper targets associated with high and low sulphidation epithermal and porphyry style alteration assemblages, with quartz veining, siliceous bodies, hydrothermal breccias and oxidized vein stockworks.
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.
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 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 its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.