Lara raising $33.7 million for Brazilian copper-gold project
Lara Exploration Ltd. [LRA-TSXV, LRAXF-OTC Pink] said Tuesday it is aiming to raise $33.7 million to advance the company’s Planalto copper-gold project in Brazil.
The company said it has reached a deal with an syndicate of agents in connection with a “best efforts” private placement of up to 6.75 million shares priced at $3.00 each, for maximum proceeds of approximately $20.25 million.
The company said it intends to complete a concurrent non-brokered private placement of up to 4.5 million common shares at the issue price for maximum proceeds of approximately $13.5 million. Closing of the brokered and non-brokered placements is expected to occur by March 31, 2026.
Lara shares advanced on the news, rising 2.6% or $0.08 to $3.15. The shares trade in a 52-week range of $3.25 and $1.10.
Lara is a prospect and royalty generator with a focus on the identification, acquisition and exploration of precious metal, base metal, industrial metal and other resource opportunities in South America. Its portfolio of properties is located primarily in Brazil and Peru and Chile. The company is currently focused on the Planalto copper-gold project in the Carajas mining district in northern Brazil.
The Planalto project consists of 4,726-hectares of exploration licenses, covering meta-volcanic sedimentary sequences and intrusives of early Proterozoic-age with IOCG-type mineralization located near Vale SA’s [VALE-NYSE] Sossego copper mine and Oz Minerals Ltd.’s Antas and Pedra Blanca copper mines in Carajas Mineral Provinces.
Based on a recent preliminary economic assessment (PEA) report, it is anticipated that Planalto will be developed as a conventional open pit with low strip ratio, processing 8.0 million tonnes annually via a conventional crushing and grinding circuit followed by froth flotation. A single saleable chalcopyrite concentrate with a major gold credit is to be transported internationally to third-party smelters.
During the first six years, the PEA envisages a production schedule producing an average of 79 million pounds of copper and 7,200 ounces of gold annually, and over an 18-year mine life the project is expected to deliver 1.2 billion pounds of copper and 111,000 ounces of gold. The project is located on private farmland, 4.0 kilometres from the state highway with tension powerlines alongside and close to two major Carajas mining towns with excellent infrastructure, the company has said.
In a recent press release, the company said it has received new drilling permits from the Canaa dos Carajas municipal environmental agency and that drilling has resumed on the Silica Cap mineralized trend.
It said initial drill holes will test the strike extension immediately south of the proposed Silica Cap open pit defined in the 2025 PEA study and then will proceed to test the 3.0-kilometre target trend into the recently acquired adjacent Atlantica mineral license, once permits have been secured for this license.
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