VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2014) - Lara (TSX VENTURE:LRA) announces the expiration of the letter of intent dated November 29, 2013 whereby Lara and privately held Kiwanda Mines (NA) LLC agreed to sell to Nebo Capital Corp. (TSX VENTURE:NBO.P) their interests in certain coal properties and assets in Colombia, comprising:
1. A 19.91% equity interest in Carbhid SAS, a coal producer which holds an operating contract on the Escalones concession in the Boyaca district, where it is developing underground coal mining operations targeting thermal and metallurgical-grade coal;
2. The option to earn a 51% interest in all of Carbhid's interests in the Escalones Property, in return for investing $830,000 in exploration and development of the property by December 30, 2014;
3. The option to acquire a 75% interest in the Pelaya exploration prospect, in the Cesar district of northern Colombia for payments of US$ 3.8 million over five years and exploration work commitments; and
4. A 100% interest in Andean Coal Alliance (BVI) Ltd, a company incorporated in the British Virgin Islands and owned by Lara (50%) and Kiwanda (50%).
Lara and Kiwanda may re-examine the proposed transaction with Nebo in the coming weeks, but in any case intend to continue to seek a transaction to advance and develop the Colombian interests.
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 has verified, and approved the disclosure of, the technical information in this news 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.