VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2012) - Lara Exploration Ltd. (TSX VENTURE:LRA) ("Lara" or the "Company") is pleased to report that it has optioned the Chocos Polymetallic Project in southern Peru to CJL Capital Inc. ("CJL") of Québec city, Québec. Under the terms of the agreement, CJL will invest a minimum of US$400,000 over three years and make payments in cash and shares to Lara totalling US$450,000 over three years to earn a 100% interest in the project. Lara will retain a Net Smelter Return Royalty of 2% on any production. The option is subject to TSX Venture Exchange approval in respect of CJL, which is a capital pool company and the option constitutes its Qualifying Transaction.
The 10,200-hectare Chocos property is located within the prolific Tertiary Volcanic Belt of southern Peru about 100 kilometres north of Arequipa. The Company has carried out mapping, surface sampling and trenching, targeting a series of lead, zinc and silver veins that extend from 200 metres to as much as one kilometer in length and have thicknesses ranging from 0.20 to 2.0 metres.
Andre Gauthier, Lara's President, a member of the Quebec Order of Engineers, is a Qualified Person as defined by 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 primarily in Brazil and Peru where it has signed agreements for fifteen joint ventures and three 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.