Lara Exploration Announces Closing of the Atlantica License Acquisition

Executive Summary

• Lara Exploration closed its purchase‑and‑sale agreement with Atlantica do Brasil Mineração, acquiring a 345‑hectare exploration licence adjacent to the Planalto Copper‑Gold Project.
• The transaction was funded by issuing 164,777 common shares at a deemed CAD $2.2758 per share, subject to a one‑year voluntary hold period.
• Lara committed to drill a minimum of 2,000 m and deliver a NI‑43‑101 Technical Report by end‑2027, with tiered success‑fee payments tied to future Measured & Indicated copper resources (up to US $1.25 M per year, minimum US $0.5 M).

Key Details

• Licence acquisition: 345 ha adjacent to Planalto Project in Carajás Mineral Province, Brazil; potential to augment the Silica Cap resource.
• Share consideration: 164,777 Lara common shares issued at CAD $2.2758 per share; shares subject to a voluntary one‑year hold period post‑closing.
• Drilling commitment: Minimum of 2,000 m of drilling to be completed by Lara on the newly acquired licence.
• Technical reporting: NI‑43‑101‑compliant Technical Report (TR) required by end of 2027; updated TRs due in December 2028 and thereafter for additional resource determinations.
• Success fee structure:
• By Dec 2027 – US $0.06 per lb Cu contained in Measured & Indicated Resources reported in the first TR.
• By Dec 2028 – Same rate on any additional Measured & Indicated Resources added in an updated TR.
• Post‑2028 – US $0.08 per lb Cu for resources disclosed in subsequent TRs.
• Payment terms: Success fees payable annually in cash or Lara shares, at Lara’s discretion; maximum annual payment US $1.25 M, with a minimum annual payment of US $0.5 M regardless of resource size.
• Share issuance cap: Lara will not issue more than 5,000,000 shares to Atlantica without prior TSX‑V approval; Atlantica will not become an insider as a result of the share receipt.
• Royalty provisions: Atlantica and its underlying vendor each entitled to a 1 % net smelter return royalty on any production derived from the licence.

Notable Quotes

(No direct quotes were provided in the release.)