Lara Exploration Limited announced that it has signed a Heads of Agreement for the sale of the company's Vila Oito and Floresta nickel laterite projects to London listed Horizonte Minerals plc.

Under the terms of the HOA, Horizonte will issue 8.5 million new shares to Lara at a deemed value of approximately USD 2 million. The shares will be escrowed and subject to a minimum 12 month hold period and then a staged release according to TSX Venture Exchange standards. The sale is subject to Horizonte completing due diligence, receiving certain third party approvals and completion of a definitive agreement.

The Vila Oito nickel laterite deposit is adjacent to and contiguous with the Araguaia resource currently being drilled by Horizonte. The Floresta target is separate and lies just to the north of Vila Oito.