Lara Secures Renewals for the Sergipe Potash Licenses
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/21/13 -- Lara
Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is
pleased to report that it has secured renewals for the Exploration
Licenses comprising its Sergipe Potash Project in northeast Brazil.
Under the terms of the Option Agreement (the "Agreement") signed with
Aguia Resources Ltd. ("Aguia") on May 31, 2012, the renewal of these
licenses triggers the first payment and Aguia is now required to
issue 4 million of its ordinary shares to Lara. However, the issue of
these shares remains subject to approval by the shareholders of Aguia
at a general meeting scheduled to be held in March 2013. Once issued,
the shares will remain in escrow until December 21, 2013 (one year
from the date of publication of the renewals).
Aguia is currently focusing its efforts on its phosphate projects in
southern Brazil, but expects to resume work on the Sergipe Potash
Project in the second half of this year. Under the terms of the
Agreement, Aguia has until December 21, 2013 to fulfill its minimum
exploration work commitment of $1.5 million, which must include at
least one drill hole to test the known potash horizons within the
Property (to a depth that will result in the targeted Ibura Member of
the Muribeca Formation being fully tested). Aguia may then issue Lara
with another 6 million ordinary shares to earn a 75% interest in the
project. Aguia may issue and deliver a further 5 million ordinary
shares to Lara on or before December 21, 2014 to acquire 100%
ownership and control of the project.
Lara's Sergipe Potash Project comprises 21,483 hectares of
exploration licenses located in Sergipe State, northeast Brazil. The
claims are adjacent to and cover the extensions of the potash-bearing
sedimentary basins of the Taquari-Vassouras mine (owned by Vale
S.A.), which produces approximately 650,000 tons of potash annually.
These properties have been explored extensively for oil and gas in
the past and a database of seismic surveys and exploration drilling
is available through the Brazilian National Petroleum Agency ("ANP").
This ANP data includes eight wells drilled within Lara's property,
several of which intercepted potash, with the best drilled intercept
37.6 meters of potash mineralization in ten separate
sedimentary units between 1,710 and 1,806 meters depth. Aguia has
approximately 68,700 hectares of licenses, including blocks that are
adjacent and contiguous with those of Lara in the northern part of
the basin and blocks covering southern extensions of the basin.
Michael Bennell, Lara's Vice President Exploration and a Fellow of
the Australasian Institute of Mining and Metallurgy, is a Qualified
Person as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects and has approved the technical
disclosure in this release and has verified the data disclosed.
Lara is a South American-focused 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, mostly
funded through fifteen Joint Ventures and three Strategic Alliances.
Lara's common shares trade on the TSX Venture Exchange under the
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Lara Exploration Ltd.
VP Corporate Development
+1 416 703 0010
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