Carbhid currently holds the operating contract for the 90.58-hectare (223.8-acre) Escalones concession in the Boyaca district and Lara’s $C220,000 investment to acquire the shares will be used to complete the Carbhid 2 shaft and development that can ultimately raise production to 1000 tonnes per month of thermal and coking coal.

Carbhid completed the El Diamante incline shaft and related reserve development last year. It will begin full production this year.

Excavation of the second incline for Carbhid 2 began this year.

“Carbhid has plans to develop a total of seven operating shafts on the Escalones concession, in addition to consolidating other properties and projects in the district,” Lara officials said.

The Carbhid transaction was generated by the Andean Coal Alliance and funded by Kiwanda Mining Partners.

Kiwanda, which generates, acquires and develops coal projects in Peru and Colombia, has chosen not to participate in the Carbhid financing.

However, Lara said it would work with Carbhid to source and complete larger coal acquisitions in the Boyaca and Santander districts.

Lara's common shares trade on the TSX Venture Exchange under LRA.