VANCOUVER – Lara Exploration Ltd. (TSXV:LRA) has reached an $ 8.25-million agreement under which Aguia Resources Ltd. (ASX:AGR) can earn a full-interest in one of its properties in northeast Brazil.
The pact for Lara’s 21,483-hectare potash project would have Aguia issue up to 15 million shares and invest $ 1.5 million in exploration of the property.
“Our property packages are adjacent and complementary and we are very excited that Aguia plans to drill in the short term,” said Lara chief executive officer Miles Thompson in a release Monday.
“This deal gives us exposure to a much larger part of this producing and highly prospective potash basin, in addition to Aguia’s very exciting new phosphate discovery in southern Brazil.”
The first stage of the agreement will have Aguia issue four million shares, valued at about A$ 1.8 million as of market close on Monday, which will be part of a 12-month hold period. The company will also have to carry out the exploration at that time, pending approval of the Australian Stock Exchange.
Afterwards, Aguia has the option to issue another six million shares, valued at about $ 2.7 million, by the first-anniversary of the agreement to earn a 75 per cent stake.
It could also make a third issuance of about five million shares, or $ 2.25 million, by the second anniversary to obtain full ownership.
Lara Exploration shares moved down a penny to $ 1.14 on the TSX Venture Exchange.
Local news from metronews.ca/vancouver
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