Veirano and FFA Legal & Support Mining Companies advised on the deal
Lara Exploration Ltd. has signed the Definitive Agreement granting Capstone Mining Corp., an exclusive option to earn up to a 70% interest in the Company’s Planalto Copper Project in the Carajás Province of northern Brazil. Lara’s exploration work over the last 12 months has yielded a series of very 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 surface averaging 0.48% Cu and 48 ppb Au (see Company news release of June 19, 2018 for details).
Under the terms of the Agreement, Capstone will pay Lara US$200,000 following receipt of a drill permit for the Project and will then invest a minimum of US$1.2 million within a year of signing the Agreement, to drill test extensions of the mineralization identified at Homestead and scout drill other targets on the property.
Capstone can earn an initial 49% interest by investing US$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 US$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. Lara will hold certain buy back rights to reacquire a majority interest in the Project should Capstone decide to discontinue investing.
The Planalto Copper Project comprises 4,726 hectares of exploration licenses covering meta-volcano-sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type mineralization, located near Vale’s Sossego copper mine and Oz Minerals Antas copper mine, in the Carajás Mineral Province of northern Brazil. Lara has the option to purchase 100% of the Planalto Project by making staged cash payments totaling US$500,000 (US$100,000 paid to date) and paying a 2% NSR royalty on any production (Lara retains the right to purchase 50% of this royalty for a cash payment of US$2 million).
Veirano advised Capstone Mining Corp. with Pedro Freitas (Picture) Pedro Garcia and Pedro Katz.
FFA Legal & Support Mining Companies advised Lara Exploration Ltd. with Luis Mauricio Ferraiuoli de Azevedo and Ianê Pitrowsky da Rocha.