Lara Exploration Ltd.
TSX VENTURE : LRA

Lara Exploration Ltd.

September 24, 2009 07:30 ET

Lara Exploration to Acquire Maxy Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2009) - Lara Exploration Ltd. (TSX VENTURE:LRA) is pleased to report that it has signed a Letter of Intent ("LOI") with Maxy Gold Corp. (TSX VENTURE:MXD) ("Maxy") respecting the acquisition of Maxy by, or merger of Maxy into, Lara at an exchange ratio of one Lara share for eight Maxy shares. The exchange ratio being offered by Lara represents a premium of 35% to the closing price of Maxy's shares on September 22, 2009. The transaction will involve Lara issuing 4,307,733 shares and, following completion, Lara will have 23,554,234 issued shares of which 4,307,733 shares (18.29%) will be held by the former shareholders of Maxy. It is intended that Maxy's President, Andre Gauthier, will join Lara's Board of Directors and become its President on closing. The transaction has been approved by the Boards of Directors of both companies, but remains subject to approval of Maxy's shareholders and the TSX Venture Exchange.

The proposed transaction brings Maxy's successful exploration team with Andean experience and highly prospective exploration portfolio in Peru, both of which are complementary and accretive to Lara's existing business. Additionally Maxy's projects in China open up a new sphere of activity for Lara and access to both prospective acquisitions and potential joint venture partners.

Maxy's activities in China are focused on the Midu joint venture in Yunnan Province, south western China and on the Huangnan joint venture and alliance with Western Mining Group, in Qinghai province of Western China. Western Mining Group is one of China's largest mining companies headquartered in Qinghai province. Maxy holds a 75% interest in the 189 square kilometre Midu Joint Venture, where gold mineralization zones have been identified and are being defined in East-West trending structures and trenches with associated high grade values in colluvial sediments. Maxy is earning a 50% interest in the Huangnan joint venture which includes two properties which total 203 square kilometres where exploration has delineated significant geophysical and geochemical anomalies.

In Peru, Maxy has a 100% interest in 17 gold and base metal mineral exploration properties totalling 140,000 hectares in central and southern Peru. Maxy's gold properties are located in the Southern Peru volcanic belt that is host to various epithermal low and high sulphidation systems and numerous polymetallic systems with high silver and gold contents. Maxy's base metals properties are located in the Andahualas Yauri Belt that is host the Las Bambas porphyry and the Tintaya district that is host to various world class porphyry deposits.

About Lara

Lara is a well-funded prospect generator with a multi-commodity exploration portfolio focused on Brazil but with significant property holdings in Colombia and Peru. Lara's common shares trade on the TSX Venture Exchange under the symbol "LRA".

About Maxy

Maxy is a publicly traded junior exploration company focused on mineral acquisition, exploration and development in China and Peru. Maxy has internationally recognized Management and Exploration Teams, with a large diverse network of contacts throughout China and South America. Maxy's common shares trade on the TSX Venture Exchange under the symbol "MXD".

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

Contact Information

  • Lara Exploration Ltd.
    Miles Thompson
    President
    604-669-8777
    or
    Lara Exploration Ltd.
    Julia Maxwell
    Investor Relations
    604-669-8777
    604-688-1157 (FAX)
    or
    Lara Exploration Ltd.
    Chris MacIntyre
    Investor Relations
    416-640-1932
    www.laraexploration.com
    or
    Maxy Gold Corp.
    Andre Gauthier
    President
    604 688-8811
    or
    Maxy Gold Corp.
    Vicky Wang
    Investor Relations
    604 688-8811
    www.maxygoldcorp.com