Lara signs LOI for financing for Itaituba project

Executive Summary

• Lara Exploration Ltd. signed a binding Letter of Intent with a non‑reporting Ontario company to fund the Itaituba vanadium project, securing staged payments totalling $2.0 M USD through 2027.
• The agreement grants the partner (PubCo) an initial 90 % interest in the project in exchange for equity and future cash/royalty considerations, while Lara retains a 9.9 % fully‑diluted ownership with upside rights.
• Additional milestones include $1 M USD payable within 90 days of the first feasibility study and a 2 % net smelter return royalty on production and nearby acquisitions.

Key Details

• Financing Schedule:
• $150,000 received to date (2025).
• $500,000 total scheduled for 2025.
• $600,000 scheduled for 2026.

• $900,000 scheduled for 2027.

• Equity & Ownership Structure:

• PubCo will receive equity in its vehicle valued at a minimum of US$1 M and a 9.9 % fully‑diluted ownership stake in exchange for 90 % project ownership.

• PubCo holds an option to acquire the remaining 10 % interest by paying Lara $250,000 plus one million PubCo shares; Lara may force exercise on the third anniversary of the public transaction.

• Additional Payments & Royalties:

• Lara entitled to a further US$1 M payment within 90 days after publication of the first feasibility study.

• A 2 % net smelter return (NSR) royalty applies to any production from the Itaituba project and any other properties acquired within a 5‑km radius.

• Exploration Plans:

• Lara, as operator, will conduct ~1,200 m of diamond and reverse‑circulation drilling, surface sampling, mapping, and a LiDAR topographic survey in the coming months.

• Strategic Intent of Partner:

• The optionee aims to list the project on a stock exchange, either as a standalone entity or within a basket of vanadium projects.

Notable Quotes

(No direct quotes were provided in the release.)