Lara Exploration has reported that the option agreement signed in June 2012 with Aguia Resources, to acquire a 100% interest in the Company's Sergipe Potash Project and the option agreement signed in October 2014 with Paradigm Metals, to earn an 80% interest in the Company's Canindé Graphite Project, have been terminated by the respective partners.
Both projects are located in northeast Brazil.
Aguia was unable to complete its drilling commitment on the Sergipe Project and elected instead to pay Lara $400,000 in cash, issue to Lara 11,000,000 common shares of Aguia (that Lara has subsequently sold) and to terminate its option.
The Company has elected to relinquish these mineral rights, considering the project unfeasible in the current pricing environment for potash.
Paradigm completed eight shallow drill holes on the Canindé Project, with the best intersection returning 13.69 metres averaging a grade of 18.38% graphitic carbon, from diamond core drilling at the Pedra Preta target (see Company news release of May 20, 2015 for details).
Paradigm also completed laboratory-scale graphite recovery tests at SGS Geosol Laboratorios Ltda. (Belo Horizonte, Brazil), on high-grade and low-grade samples, achieving good recoveries from the high-grade sample. The Company is reviewing the work completed by Paradigm.