The Conversation (0)
Lara Exploration (TSXV:LRA) reported that it has entered into a Atrategic Alliance Agreement with Antofagasta Minerals in which Antofagasta will invest $1,200,000 over a 2-year period to fund a joint generative exploration for copper in Brazil.
Lara Exploration (TSXV:LRA) reported that it has entered into a Atrategic Alliance Agreement with Antofagasta Minerals in which Antofagasta will invest $1,200,000 over a 2-year period to fund a joint generative exploration for copper in Brazil.
As quoted in the press release:
By funding the generative work carried out by the Alliance, Antofagasta will acquire a 51% interest in any project that a technical committee (consisting of representatives of both Lara and Antofagasta) nominates as a Designated Project. Antofagasta may earn an additional 19% interest (for a cumulative 70% interest) by spending a further US$ 5,000,000 on the Designated Project within four years, with a minimum of US$ 500,000 committed in the first year. Upon acquiring a 70% interest in a Designated Project, Antofagasta will pay Lara US$ 3,000,000 and the Designated Project will continue to be explored and, if warranted, developed as a joint venture. If Lara is unable or unwilling to fund its proportionate share of the joint venture expenses, normal dilution clauses will apply, with a conversion to a 2% net smelter return royalty if its interest drops below 10%. Lara will manage the exploration during the first two years of each such joint venture, after which time Antofagasta can elect to manage the exploration.
Click here to view the full press release.
