Business
Option and Royalty Agreement Signed for Minsur to Acquire the Lara Project
Vancouver, British Columbia--(Newsfile Corp. - July 28, 2020) -  Lara Exploration Ltd. (T...
About this update from Lara Exploration Ltd.
[{"type":"text","content":"Option and Royalty Agreement Signed for Minsur to Acquire the Lara ProjectVancouver, British Columbia--(Newsfile Corp. - July 28, 2020) -  Lara Exploration Ltd. (TSXV: LRA) (\"Lara\" or the \"Company\"), is pleased to report that it has, with partner Global Battery Metals Ltd. (\"GBM\"), signed an Option and Royalty Agreement (\"the Agreement\") for the sale of the Lara Copper Project for US$5.75 million and a 1.5% NSR royalty to Minsur S.A. (\"Minsur\"). Minsur is a Peruvian tin and gold miner that is in the late stages of building the US$1.6 billion capex Mina Justa open pit copper mine near Marcona, in the same district as the Lara project.The Lara Copper Project comprises mineral rights covering a partly defined copper-molybdenum porphyry deposit, located in the Laramate Province of the Ayacucho Department, approximately 40km inland from the town of Palpa on the Panamerican Highway. The Project is registered in the name of Minas Dixon S.A., which is in turn owned 55% by GBM and 45% by Lara. Under the terms of the Agreement Lara and GBM have granted Minsur an exclusive option to acquire a 100% interest in the Project by making staged cash payments of US$5.75 million, based on permitting milestones, as summarized in the following table: Milestone/Date Option Payments (US$) Upon Registration of the Agreement before Public Notary (Paid) 59,000 One year from Registration of the Agreement 200,000 Approval of Environmental Study and Start of Work (\"DIA-IA\") 200,000 One year from approval of the DIA-IA 300,000 Approval of Semi-Detailed Environmental Study (\"EIA-SD\") 500,000 One year from approval of the EIA-SD 1,500,000 Upon transfer of Title 3,000,000 Total (US$) 5,759,000  In addition to the cash payments tabled above, Minsur has also granted a 1.5% Net Smelter Return Royalty (\"NSR\") to Lara (0.75%) and GBM (0.75%), payable on any production from the property. Minsur retains the right to purchase a 0.25% NSR from each of Lara and GBM (collectively one third) of the NSR for US$5 million at any time prior to the commencement of commercial production.About LaraLara is an exploration company following the Prospect and Royalty Generator business model, which aims to minimize shareholder dilution and financial risk by generating prospects and exploring them in joint ventures funded by partners. The Company currently hold...