Lara Exploration Ltd.

Lara Exploration Ltd.

November 18, 2008 08:00 ET

Lara Signs Strategic Alliance Agreement With Sprott Resource Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 18, 2008) - Lara Exploration ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to report that it has signed a Definitive Agreement (the "Agreement") with Sprott Resource Corp. ("SRC") to form a Strategic Alliance (the "Alliance") to acquire phosphate, potash and other fertiliser feedstock mineral projects.

Under the terms of the Agreement, SRC will commit to spend $500,000 in the first year and may at its election invest a further $2,500,000 over the following two-year period to earn up to a 63% interest in the venture, subject to Lara's option to contribute funds to maintain a 50% interest in the venture. Lara will be project operator, generate projects and manage exploration.

The Alliance has already acquired a substantial exploration portfolio, comprising 205,000 hectares of claims and licenses in Brazil and Colombia. In Brazil, the Alliance has seven project areas covering phosphate-bearing sedimentary sequences or carbonatite igneous rocks and two areas with known potash-bearing evaporite sequences. The claims in Colombia cover sedimentary sequences containing various phosphate-rich beds.

About Lara

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Lara Exploration Ltd.
    Miles Thompson
    (604) 669-8777
    Lara Exploration Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 669-8777
    (604) 688-1157 (FAX)