Asara Resources Resolves Chilean Legal Dispute, Clears Path for Loreto Project Advancement

Asara Resources Limited (ASX: AS1) has successfully settled legal proceedings initiated by joint venture partner Costa Rica Dos SpA regarding the Company's Loreto Copper Project in northern Chile. The dispute, disclosed initially in November 2023, related to Asara's dealings under its US$17.6 million Option and Joint Venture Agreement (OJV) with Teck Resources Chile Limitada (Teck Chile).

The settlement includes establishing a new entity, Compañía Minera Loreto SpA, which will hold the Loreto Project assets. Asara's subsidiary will transfer the project to this entity at book value, and Costa Rica Dos will acquire a 25.26% stake for approximately AU$87,122, to be paid from future profits under the Teck Chile OJV. Both parties will enter a new shareholder agreement mirroring prior arrangements and have agreed to withdraw all claims irrevocably. The resolution allows Asara to focus on advancing Loreto and divesting from its Paguanta Project, aligning with the Company's strategic shift toward its Kada Gold Project in Guinea. Executive Director Tim Strong welcomed the outcome, noting it provides stability and a clear pathway for future project development.

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