Topic: How To Invest

Hi Pat: What are your recommendations regarding Lara Exploration and Virginia Mines? Thank you.

Article Excerpt

Lara Exploration, $1.60, symbol LRA on Toronto (Shares outstanding: 25.9 million; Market cap: $41.4 million; www.laraexploration.com), aims to find properties that contain minerals and then explore them through joint ventures funded by partners. The company currently holds prospects and deposits in Brazil, Peru, Colombia and China. Joint ventures are crucial for junior-exploration companies, as they give them a way to fund further exploration on properties where they have made initial mineral discoveries. This way, juniors can profit from exploration and retain an interest in their properties, without selling additional stock or taking on debt. Lara’s joint ventures give it some appeal, but all of its properties are in the very early stages of exploration. That adds considerable risk. As well, the stock is up over 100% since September 2010. We don’t recommend Lara Exploration. A: Virginia Mines, $9.15, symbol VGQ on Toronto (Shares outstanding: 30.8 million; Market cap: $282.0 million; www.virginia.qc.ca), has over 20 exploration projects in Quebec. On November 30, 2010,…