Investor presentation, April 2013


Published on

Published in: Investor Relations, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Investor presentation, April 2013

  1. 1. TSX.V: LRA1Investor PresentationApril 2013Creating Value Through Discovery in South America“Creating Value Through Exploration, Acquisitionsand Discovery”
  2. 2. TSX.V: LRAForward Looking StatementsExcept for statements of historical fact relating to the Company, certain information contained hereinconstitutes forward-looking statements. Forward-looking statements are frequently characterized bywordssuch as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate” and other similar words, or statementsthatcertain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinionsandestimates of management on the date the statements are made, and are subject to a variety of risksanduncertainties and other factors that could cause actual events or results to differ materially from thoseprojected in the forward-looking statements. There can be no assurance that such forward-lookingstatementswill prove to be accurate, as actual results and future events could differ materially from thoseanticipated insuch statements. Accordingly, readers should not place undue reliance on such statements. TheCompany doesnot undertake to update any forward-looking statements that are incorporated by reference herein,except inaccordance with applicable securities laws.For a description of material factors that could cause the Company’s actual results to differ materiallyfrom theforward-looking statements, please review the Company’s Prospectus, Annual Information Form, andMD&Afiled on
  3. 3. TSX.V: LRA• TSX Venture Exchange listed in Canada, symbol LRA• Exploring in Brazil, Peru, Chile and Colombia• Experienced South American management team• Large portfolio across a diverse range of commodities• 15 partnerships and three alliances potentially deliveringover $61m in cash and third-party funded exploration• ~$5m in treasury covers 2013-14 budgets• New copper-gold discovery at Liberdade in BrazilCompany SnapshotManagement & DirectorsMiles Thompson, ChairmanAndre Gauthier, PresidentMichael Bennell, VPExplorationChris MacIntyre, VPCorporateDavid Miles, CFOKim Casswell, CorpSecretaryNoel Diaz, Manager PeruHelio Ikeda, Manager BrazilIndependent DirectorsMichael WinnByron KingAdrian CalvertChris JonesGeoff ChaterManagement & DirectorsMiles Thompson, ChairmanAndre Gauthier, PresidentMichael Bennell, VPExplorationChris MacIntyre, VPCorporateDavid Miles, CFOKim Casswell, CorpSecretaryNoel Diaz, Manager PeruHelio Ikeda, Manager BrazilIndependent DirectorsMichael WinnByron KingAdrian CalvertChris JonesGeoff ChaterShare Capital Price Shares % TotalOutstanding 1.30 30,499,687 83%Warrants 1.85 4,683,175 11%Options 1.04 2,436,875 6%Fully Diluted 37,019,6973
  4. 4. 4TSX.V: LRAProspecting – we acquire mineral prospects and work up targets on them, thenbring in Joint Venture partners to fund on-going exploration and developmentAlliances – we conduct high-risk generative work for specific commodities/regions,funded by partners, with any targets acquired then going into Joint VenturesJoint Ventures – we retain risk-free minority interests in the projects wegenerate, shares in partner companies and/or royaltiesRisk – this approach makes Lara a more sustainable business than most of itspeers, while remaining exposed to the substantial returns generated by a majordiscoveryLiberdade – this is what its all about – our JV with Chilean copper giant Codelco hasintercepted significant copper-gold mineralization at Liberdade. Codelco must carryLara through additional drilling and resource definition to earn its interest.Prospect Generator Business Model4
  5. 5. 5TSX.V: LRABreaking News – Liberdade DiscoveryIOCG – drilling indicates apotentially large Carajás-type copper-gold systemCodelco JV – $3 million ofexploration to earn 51%and delivering a minimumcompliant resource of500,000t of containedcopper to earn 75%Next Step - 3,000m to4,000m drill programstarting up in April 20135
  6. 6. 6TSX.V: LRAMulti-Commodity Project Portfolio6
  7. 7. 7TSX.V: LRAOption and Joint Venture AgreementsPartner Project CommodityCountryLaraResidual%PaymentUS$mExploration US$mSharesmYearsAntofagasta Sami Copper, Gold Brazil 25%+BFS 6.00 4Aguia Resources Sergipe Potash Brazil 25% 0.10 1.50 10.0 2Codelco Liberdade Copper Brazil 25% 3.00 4Avenue Resources North Brazil Tin Brazil 25% 2.50 4Focus Graphite Caninde Graphite Brazil 40% 7.00 0.50 5Redzone Resources Lara + Tingo Este Copper Peru 45% 0.85Network Exploration Picha Copper, Silver Peru 25%+PFS 1.20 8.00 3.00 3Halston Exploration Condoroma Copper Peru 25%+FS 1.80 10.50 6Halston Exploration Coporaque Copper Peru 25%+FS 1.65 10.00 6Alta Resources Atenea Gold Peru 25%+FS 1.50 6.75 7Totals 6.15 55.25• Partnerships leverage Lara’s investment in targetidentification and acquisition and significantly increasethe number of opportunities that we’re able to test7
  8. 8. 8TSX.V: LRA3 Strategic AlliancesPartner Commodity CountriesLaraResidual%PaymentUS$mExplorationUS$m/Year YearsAntofagasta Copper Brazil 30% 3 0.6 3Kiwanda Phosphate Peru, Chile, Colombia 30% 0.5 3Kiwanda Coal Peru, Colombia 30% 0.6 3Totals 3.00 1.7• 3 Strategic Alliances formed in 2012• Each Alliance provides funding for generative work, with new projects going tojoint ventures where the partner will fund exploration to earn a 70% interest• Low-risk way for Lara to leverage its experience and database to acquire newjoint venture project interests8
  9. 9. 9TSX.V: LRAListed Interests and Royalty AgreementsPartner Project Commodity Country Lara InterestCashUS$m Royalty Shares mVertical Mineração Vertical Iron Brazil Royalty 0.80 0.75-1.50/tHorizonte Minerals Vila Oito Nickel Brazil Shares 8.5Avenue Resources Sao Lourenco Tin Brazil Royalty 1.00 1.0% 3.0Avanco Resources Conceicao Ni-PGE Brazil Royalty 3.00 2.0%Hochschild Lampa Gold Peru Royalty 2.0%CJL Capital Chocos Zinc-Lead Peru Royalty 0.45 2.0%Totals 2.25• Most joint venture agreements result in a royalty interest if Lara elects not to fundits minority interest• Market currently puts high value on royalties and Lara intends to grow this part ofits portfolio in the coming years• The Vertical iron project is now permitted to begin small-scale production and,subject completion of project finance, could be the first royalty to start paying out9
  10. 10. 10TSX.V: LRA• 2012– Lara (Cu, Mo)– Curionópolis (Cu, Au)– Vertical (Fe)– São Lourenço (Sn)– Conceição (Ni)– Liberdade (Cu)Six Drill Programs JV Funded Again in 2012• 12 third-party funded drill programs completed 2011-2012.• 2012 programs substantially expanded the Lara Copper and Vertical Irondeposits and confirmed the Liberdade copper discovery.• 5 drill programs already planned for 2013• 2013– Liberdade (Cu)– Sergipe (K)– Condoroma (Cu)– Picha (Cu-Ag)– Sami (Cu-Au)10
  11. 11. 11TSX.V: LRABrazil Exploration Highlights• Copper-gold discovery atLiberdade with Codelco.• Curionopolis high-grade coppertarget, >1% Cu breccias.• Sergipe Potash target to bedrilled in 2013• Growing pipeline of iron,copper and graphite prospects.• New copper explorationAlliance with Antofagasta• 16 projects, 7 funded by JV
  12. 12. 12TSX.V: LRAPeru Exploration Highlights• Drilling substantiallyexpanded footprintof the Lara Cuporphyry.• World classepithermal districtoutlined at Sami.• Drill permitssecured forCondoroma andPicha• 18 projects, 8 JVs
  13. 13. 13TSX.V: LRA• 20 high sulphidationepithermal gold andporphyry style copper-goldtargets indentified.• The large area ofprospective alteration isindicative of districtpotential.• Pitusaja zone of strong silicaalteration with gold values.Similar outcrops nearbysuggest mineralizationextends under cover forseveral kilometres.Sami (Peru) – District-Scale Epithermal System
  14. 14. 14TSX.V: LRA• Drilling has materially expandedthe mineralization to 2km by0.5km.• Low altitude, close toinfrastructure and the coast.Lara Copper (Peru) – Mid-Size Cu-Mo Porphyry• Purchase by Minsur of a 70% interestin the nearby Marcona - Mina Justadeposit for $505 million establishesvaluation target benchmark
  15. 15. 15TSX.V: LRA• Iron formations extend for over10km within the property• Pilot mining license andpermitting in place for small-scale production• Final Exploration Report withResources and Reserves filedwith the Brazilian Dept ofMines• Vertical currently working tosecure a Mining License andproject financeVertical Iron (Brazil) - Royalty Project
  16. 16. 16TSX.V: LRA• Located in the Carajas IOCGdistrict close to several operatingiron and copper mines.• Artisanal workings expose high-grade copper-gold veins.• Recent drill holes include: 53.8mat 9.59% Cu & 29.05m at 4.56% CuCurionopolis (Brazil) - High-Grade Copper
  17. 17. TSX.V: LRA• People - management has depth (10 geologists), is highly experienced technically,commercially and locally. Insiders are significant shareholders.• Politics – active in multiple jurisdictions – Brazil, Peru, Chile and Colombia.• Finance – $5m treasury sufficient for 2013-14. The company expects additional cashfrom portfolio sales, share sales and royalties going forward.• Paper – approximately 31m shares outstanding and 37m fully diluted.• Partnerships – over $61m of exploration to be potentially paid for by joint venturesand alliances with companies from Canada, UK, Australia and South America.• Commodities – diversified portfolio including Au, Ag, Sn, Cu, Ni, Fe, Zn, Pb, K, P, C(graphite) and coal exposure.• Portfolio - includes a number of significant discoveries and projects maturing towardsresource definition and mining.• Payback – large diverse portfolio gives multiple chances of the kind of explorationsuccess that generates outstanding returns to shareholders, while the partnershipsfunding limits the downside risk.De-Risking Exploration17