VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 24, 2014) - Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has signed an amendment to extend the option given to Aguia Resources Ltd. ("Aguia"), to acquire Lara's Sergipe Potash Project in northeast Brazil.
Under the terms of the amendment, Aguia has committed to pay US$400,000 in stages to Lara (US$100,000 of which was paid on signing) by June 30, 2015 and issue four million new Aguia shares to Lara by March 31, 2014. Aguia has also committed to complete a drill hole on the property before June 30, 2015 or failing that issue to Lara a further eleven million Aguia shares. In the event that Aguia completes the drill hole ahead of the June 30, 2015 deadline, it may then elect to issue Lara eleven million Aguia shares to acquire a 100% interest in the project.
Lara's Sergipe Potash Project comprises 21,483 hectares of exploration licenses that are adjacent and complementary to the licenses already held by Aguia, covering northern extensions of the potash-bearing sedimentary units of the Taquari-Vassouras Mine (operated by Vale SA). These license areas have been explored 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 data includes eight wells drilled within Lara's license areas, several of which intercepted potash, with the best drilled intercept a cumulative 37.6 meters of potash mineralization in ten separate sedimentary units between 1,710 and 1,806 meters depth. Aguia holds approximately 68,700 hectares of licenses covering both northern and southern extensions of this potash producing basin, in addition to an exciting new phosphate discovery in southern Brazil.
Michael Bennell, Lara's Vice President Exploration and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), is a qualified person as defined by the National Instrument 43-101 Standards of Disclosure for Mineral Projects and is responsible for the preparation and verification of the technical information in this release.
Lara is an 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 in Brazil, Peru, Colombia and Chile, where it has signed agreements for twelve Joint Ventures and Strategic Alliances. 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.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.