Lara Exploration (TSXV: LRA) announced this week that it signed a Definitive Agreement granting Capstone Mining (TSX:CS) an exclusive option to earn up to a 70% interest in the Planalto copper project, located in the Caraj??s province in northern Brazil.
In a press release, the companies stated that under the terms of the agreement, Capstone has to pay Lara $200,000 following the receipt of a drilling permit for the project. Within a year of the signing, the Vancouver-based miner has to invest at least $1.2 million to drill test extensions of the mineralization identified at the Homestead target and scout-drill other targets on the property.
The site is located near Vale's Sossego mine and Oz Minerals' Antas mine."Capstone can earn an initial 49% interest by investing $5 million by the third anniversary of the agreement and can then elect to purchase an additional 2% interest in the Project by paying Lara $400,000 and committing to fund a Feasibility Study by the fifth anniversary, to reach a 61% interest. The third and final phase will comprise Capstone electing to finance, build and operate a commercial mining operation to the benefit of Lara 30% and Capstone 70%, with Lara repaying its pro-rata share of the financing out of cash flow," the firms stated in their brief.
Planalto comprises 4,726 hectares of exploration licenses covering meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type mineralization. The site is located near Vale's Sossego copper mine and Oz Minerals' Antas copper mine.
According to Lara, its exploration work over the last 12 months has yielded a series of promising drill results from the Homestead target, including hole PDH 18-03, which intercepted 130.41 metres between 68.05 metres and 198.46 metres down hole, with an average grade of 0.88% copper and 90ppb gold, or 0.93 % copper equivalent "CuEq," within a wider zone of 284.71 metres from the surface, averaging 0.48% Cu and 48 ppb Au.