Andre Gauthier reports
LARA AGREES TO TERMS OF SAMI OPTION WITH ANTOFAGASTA
Lara Exploration Ltd. has signed a letter of intent with Antofagasta Minerals SA 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-per-cent 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-per-cent interest over two years by completing a preliminary economic assessment and a further 15 per cent (for a total of 75 per cent) 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.
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