Lara And Sprott Complete Asset Swap And Private Placement
(TSX Venture: LRA) - Lara Exploration Ltd. (“Lara” or “the Company”) is pleased to report that it has completed the transfer to Sprott Resource Corp. (TSX: SCP, “Sprott”) of its 0.5% royalty on the Mantaro Phosphate Project in Peru in exchange for Sprott’s 50% interest in the Strategic Alliance formed with Lara in November 2008. In connection with this asset swap, Sprott has acquired 1,333,333 common shares of Lara at $0.75 per share in a private placement for proceeds to Lara of approximately $1,000,000.
The Strategic Alliance between Sprott and Lara currently operates in Brazil and Colombia where it holds the recently joint ventured Sergipe Potash Project (see Lara news release June 22, 2009) in northeast Brazil, a portfolio of exploration prospects for phosphate rock in both countries and a uranium exploration prospect in Colombia. Sprott invested $500,000 for its 50% share in the Alliance.
The placement gives Sprott ownership of approximately 5.35% of the 24,905,065 Lara common shares that are issued and outstanding. Lara holds 1,180,872 shares of Sprott, derived from the sale of its original interest in the Mantaro Phosphate Project.
“We’re very happy to welcome Sprott Resource Corp., as a Lara shareholder and look forward to working with Kevin Bambrough and the team to continue to build value for all our shareholders.” commented Miles Thompson, Chairman and CEO of Lara.
Lara is a well-capitalized prospect generator with a multi-commodity exploration portfolio focused on Brazil but with significant holdings in Colombia, Peru and China. 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 or contact:
Miles Thompson – Chairman & CEO, or Andre Gauthier- President, 604-669-8777.
Julia Maxwell - 604-669-8777
Chris MacIntyre – 416-640-1932
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.