Cash Payment Received from Loreto, Chile Option and Joint Venture Agreement

3

Asara Resources Limited (ASX: AS1; Asara or Company)) is pleased to announce that following the conclusion of litigation (Civil Claim) against the Company in Chile, it has received a cash payment of USD$100,000 (A$153,725)1in relation to its US$17.6m Option and Joint Venture Agreement (Agreement) with Teck Resources Chile Limitada (Teck Chile)2 on its Loreto Copper Project (Loreto) located in Northern Chile.

Transaction Terms

Pursuant to the Agreement, Teck Chile has been granted options, to earn up to a 75% interest in Loreto by making US$600,000 in staged cash payments and spending US$17m on exploration.

First Option

Asara has granted Teck Chile an option to acquire a 55% interest in Loreto (the First Option). Teck Chile may exercise the First Option by incurring an aggregate of US$5,000,000 in expenditures on Loreto and by making US$600,000 in cash payments to Asara as set out in the schedule below. The dates for remaining payments, are tied to the Permit Date.

Second Option

If Teck Chile exercises the First Option, Teck Chile shall have a further option to acquire an additional 20% interest in Loreto, by incurring an additional US$12,000,000 in expenditures over the ensuing four-year period (the Second Option).

Loreto Project Litigation

As announced on 8 May 2025, Asara successfully concluded legal proceedings brought against the Company as outlined in its ASX Announcement dated 15 November 2023. As part of the settlement, Asara was required to sell 25.26% of its interest in the Loreto Project to Costa Rica Dos SpA (Costa Rica Dos) for approximately A$87,122 with payment to be made through future profits generated in the context of the Agreement with Teck Chile. Accordingly, Asara is not required to remit the requisite portion of the recent payment to Costa Rica Dos.

Click here for the full ASX Release

This article includes content from Asara Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.