Focus Graphite Inc. (TSXV:FMS,OTCQX:FCSMF,FWB:FKC) has signed a Definitive Option Agreement with Lara Exploration Ltd. (TSXV:LRA) for the Caninde Graphite Project in Brazil. Under the First Option, Focus can earn a 51% interest in the Property paying R$30,000 to a third party for claim acquisition costs, issuing 500,000 common shares to Lara, and carrying out exploration on the Property. Under the Second Option, Focus can earn an additional 9% interest in the Property by carrying out additional exploration work including a further 5,000 m of drilling and by completing a positive Preliminary Economic Assessment, for a total expenditure of at least $4.5 million by the fifth anniversary of the Agreement.
As quoted in the press release:
Under the terms of the Agreement, Lara through its wholly-owned British Virgin Islands subsidiaries Lara (BVI) Ltd. and Pan Brazilian (BVI) Ltd. which collectively own 100% of the mineral rights to the Canindé property (the “Property”), has granted Focus two separate options to acquire a total 60% undivided interest in the Property.