Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) has agreed to sell its remaining interest in the Conceicao Nickel Sulphide Project, in northern Brazil to partner Avanco Resources Ltd. ("Avanco"). Under the terms of the new agreement, Avanco will acquire a 100% interest in the project for cash payments of $3 million and a 2% net smelter return royalty.
Under the terms of the original agreement, Avanco could earn a 75% interest in the project by completing 1,500 metres of drilling by November 2012 and then sufficient exploration work by January 10, 2014 to generate a JORC (Australasian Joint Ore Reserves Committee) compliant resource with sufficient drill data and metallurgical test work for the Brazilian Department of Mines to approve the Final Exploration Report. Avanco has completed the agreed drilling, testing various geochemical and geophysical targets outlined on the project. Results are encouraging, cutting mineralized intrusives in most holes.