Lara Exploration signed a Letter of Intent with Antofagasta Minerals for an option and joint-venture agreement on Lara’s Sami gold-copper project in Ayacucho and Huancavelica departments in southern Peru. Under the terms of the letter of intent, Antofagasta can invest $6 million in exploration over four years to earn an initial 55% interest in the project, of which the first-year expenditures of $500,000 would be a firm commitment.
Thereafter, Antofagasta can elect to earn an additional 5% interest over two years by completing a preliminary economic assessment and a further 15%, for a total of 75%, by completing a feasibility study within nine years. Antofagasta will be the project operator, and Lara will provide continuity and support in community relations and permitting.
The Sami project has approximately 50,000 ha of mineral rights. Lara has completed exploration work that has outlined 20 gold-copper targets associated with high- and low-sulphidation epithermal and porphyry style alteration assemblages, with quartz veining, siliceous bodies, hydrothermal breccias, and oxidized vein stockworks.