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Lara Exploration signed agreement with Capstone Mining

Mining News - Published on Fri, 08 Feb 2019

Image Source: Newsfile Corp.
Lara Exploration Ltd announced that it has signed the Definitive Agreement (“the Agreement”) granting Capstone Mining Corp 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 Agreement, Capstone will pay Lara USD 200,000 following receipt of a drill permit for the Project and 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 USD 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 USD 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.

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Posted By : Rabi Wangkhem on Fri, 08 Feb 2019
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