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Lara Exploration Announces Letter of Intent Signed with Capstone Mining for the Planalto Copper Project
Vancouver, British Columbia--(Newsfile Corp. - November 5, 2018) - Lara Exploration Ltd. (TSXV...
About this update from Lara Exploration Ltd.
[{"type":"text","content":"Lara Exploration Announces Letter of Intent Signed with Capstone Mining for the Planalto Copper ProjectVancouver, British Columbia--(Newsfile Corp. - November 5, 2018) - Lara Exploration Ltd. (TSXV: LRA) (\"Lara\" or \"the Company\"), is pleased to announce that it has signed a Letter of Intent (\"LOI\") granting Capstone Mining Corp. (\"Capstone\"), an exclusive option to earn up to a 70% interest in the Company's Planalto Copper Project (\"the Project\") in the Carajás Province of northern Brazil. Lara's exploration work over the last 12 months has yielded a series of very promising drill results from the Homestead target, including hole PDH 18-03, which intercepted 130.41 metres between 68.05 metres and 198.46 metres down hole, with an average grade of 0.88% copper and 90ppb gold, or 0.93 % copper equivalent \"CuEq\", within a wider zone of 284.71 metres from surface averaging 0.48% Cu and 48 ppb Au (see Company news release of June 19, 2018 for details).Under the terms of the LOI, Capstone will pay Lara US$150,000 immediately and US$ 200,000 following receipt of a drill permit for the Project and execution of the Definitive Agreement (\"the Agreement\"). Capstone will then invest a minimum of US$1.2 million within a year of signing the Agreement, to drill test extensions of the mineralization identified at Homestead and scout drill other targets on the property. Capstone can earn an initial 49% interest by investing US$5 million by the third anniversary of the Agreement and can then elect to purchase an additional 2% interest in the Project by paying Lara US$ 400,000 and committing to fund a Feasibility Study by the fifth anniversary, to reach a 61% interest. The third and final phase will comprise Capstone electing to finance, build and operate a commercial mining operation to the benefit of Lara 30% and Capstone 70%, with Lara repaying its pro-rata share of the financing out of cash flow. Lara will hold certain buy back rights to reacquire a majority interest in the Project should Capstone decide to discontinue investing.About the Planalto ProjectThe Planalto Copper Project comprises 4,726 hectares of exploration licenses covering meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type mineralization, located near Vale's Sossego copper mine and Oz Minerals Antas copper mine, in the Ca...