Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Lara Exploration to pay Estrella Gold US$314K in cash, shares for Peru property
By The Canadian Press | January 16, 2012


VANCOUVER -
Lara Exploration Ltd. (TSXV:LRA) announced Monday it has signed an option agreement to buy the Estrella Gold Corp. (TSXV:EST) Isy gold property in southern Peru from some US$314,000 in cash and shares, plus a 1.5 net smelter return royalty.
The property is adjacent to and contiguous with the Lara's Sami project and the company believes that it covers extensions of its Pitusaja high-sulphidation epithermal gold target.
Under terms of the deal, Estrella will be paid US$255,000 in cash over three years and 50,000 Lara shares on the third anniversary, Lara said in a news release. Based on Monday's midmorning price of $1.20 per Lara share, that would amount to about US$59,000.
Lara can elect to buy 50 per cent of the royalty for US$3 million within one year of commencement of commercial production.
"Results of our 2011 field season at Sami look very encouraging and we are very happy to have been able to work with Estrella to consolidate additional ground," said Lara president Andre Gauthier.
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http://www.canadianbusiness.com/article/66091--lara-exploration-to-pay-estrella-gold-us-314k-in-cash-shares-for-peru-property

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