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September 1, 2021

Lara Exploration to acquire Kenita Property in Peru from BHP

The Canadian firm will pay a 1% net smelter returns royalty to BHP on future production from the Kenita property.

Lara Exploration has agreed to acquire the Kenita property in Peru from BHP World Exploration Inc. Sucursal del Peru (BHP).

A mining rights transfer agreement has been signed between the two parties.

In exchange for the acquisition of the property, Lara Exploration will pay 1% net smelter returns royalty to BHP on any future production from the Kenita project.

Covering an area of 2,200ha, the Kenita property comprises five exploration licences situated adjacent to and surround Lara’s 400ha Puituco Project.

Located in the Huancavelica Department of Central Peru, the Puituco-Kenita property lies to the north of the Riqueza copper porphyry project.

In a press statement, Lara said: “With the consolidation of the Kenita property Lara intends to extend its surface mapping and sampling and undertake geophysical surveys (Mag and IP) and define targets for a scout drilling programme to test this potential.”

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Meanwhile, in a separate announcement, Wyloo Metals made an offer to acquire the shares it previously did not own in Canada-based Noront Resources for $0.56 (C$0.7) per share in cash.

The offer represents a 27% premium to the $0.44 (C$0.55) offer made earlier by BHP, which values 100% of Noront Resources at $257.83m (C$325m).

Commenting on Wyloo Metals’ offer, BHP said that its offer to acquire all of the issued and outstanding common shares of Noront via a takeover bid ‘is currently the only transaction available to Noront shareholders’.

Noront Resources is primarily focused on developing Eagle’s Nest nickel, copper, and palladium deposit in the Ring of Fire region in northern Ontario, Canada.

BHP chief development officer Johan van Jaarsveld said: “We have the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle’s Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come.”

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