Lara Agrees Sale of the Curionopolis Iron Project

Rhea-AI Summary

Lara Exploration has agreed to sell its Curionopolis Iron Project to Ferrous Technology Mineracao Limitada (Fertec) for staged payments totaling approximately US$2 million. The initial payment of R$6.85 million, including R$1.5 million as advanced royalties, has been received. The remaining R$3 million will be paid once the license transfer is completed. Additionally, Lara will earn a 3% gross sales royalty on future production with a minimum of US$150,000 in annual advance royalties starting from the third year. The Curionopolis Project covers a 1,226.53-hectare area in Brazil's Carajas District, with significant drilling and resource assessments already conducted. Fertec is moving forward with environmental studies and plans to apply for a pilot mining license soon.

Positive

• Lara will receive approximately US$2 million in staged payments.
• Initial payment of R$6.85 million has been received.
• Lara is entitled to a 3% gross sales royalty on future production.
• Annual advance royalties of US$150,000 starting from the third year.
• Significant exploration work already completed on the Curionopolis Project.
• Fertec is advancing environmental studies and planning for a pilot mining license.

Negative

• The sale is contingent on the publication of the license transfer.
• The remaining R$3 million payment is pending license transfer completion.

Vancouver, British Columbia--(Newsfile Corp. - May 22, 2024) - Lara Exploration Ltd. (TSXV: LRA) ("Lara") is pleased to announce that it has agreed to sell its newly recovered Curionopolis Iron Project to Ferrous Technology Mineração Limitada ("Fertec"), for staged payments totaling approximately US$2m. Lara has received R$6.85 million in payment at closing (R$1.5 million of which is advanced royalties). The remaining R$3 million will be paid upon publication of the transfer of the license into the name of Fertec. Lara will also be entitled to a 3% gross sales royalty on any production, with minimum advance royalties of US$150,000 payable from year three.

The Curionópolis Iron Project comprises a 1.226,53-hectare license area, covering iron formations located in the Carajás District of northern Brazil. To date 8,727 meters of diamond drilling, in 96 holes, have been completed, along with resource estimates and a preliminary economic assessment to Brazilian standards. Fertec is advancing environmental studies and plans to apply for a pilot mining license in the near term.

About Lara Exploration

Lara 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, retaining a minority interest and or a royalty. The Company currently holds a diverse portfolio of prospects, deposits and royalties in Brazil, Peru and Chile. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA".

For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com, or contact Chris MacIntyre, VP Corporate Development, at +1 416 703 0010.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209959

FAQ

What did Lara Exploration agree to sell?

Lara agreed to sell its Curionopolis Iron Project.

Who is the buyer of the Curionopolis Iron Project?

The buyer is Ferrous Technology Mineracao Limitada (Fertec).

How much is the total payment for the Curionopolis Iron Project?

The total payment is approximately US$2 million.

How much has Lara received at closing?

Lara has received R$6.85 million at closing.

What is the future royalty agreement for Lara?

Lara will receive a 3% gross sales royalty on any production, starting with US$150,000 in annual advance royalties from the third year.

Where is the Curionopolis Iron Project located?

The Curionopolis Iron Project is located in the Carajas District of northern Brazil.

What work has been completed on the Curionopolis Iron Project?

8,727 meters of diamond drilling across 96 holes, resource estimates, and a preliminary economic assessment have been completed.

What are Fertec's plans for the Curionopolis Iron Project?

Fertec is advancing environmental studies and plans to apply for a pilot mining license soon.