Vena Completes Sale of Azulcocha Mining to Trafigura
TORONTO, Nov. 8, 2012 /CNW/ - Vena Resources Inc. ("Vena" or the "Company") (TSX: VEM, LIMA: VEM, Frankfurt: V1RA, OTC-BB: VNARF, Xetra®: V1RA.DE), is pleased to announce that it has complied with all the requirements set out in the share purchase agreement with Trafigura Beheer B.V. ("Trafigura") that was announced on September 28, 2012, including receipt of the first US$2.5 million tranche payment. The second tranche of payments totaling an additional US$2.5 million will begin in October 2013.
This transaction has substantially improved the Company's working capital position. The third quarter financial statements and management's discussion and analysis will be filed on November 15, 2012 and will reflect the positive effect of this transaction.
In accordance with the terms of the share purchase agreement and a related assignment agreement, Trafigura has agreed to pay an aggregate purchase price of US$5 million to Vena as well as a 10% Net Profit Interest ("NPI") on future production, such NPI can be purchased for an additional US$2 million at any time. The Company will not bear any further costs in connection with the future development and operation of Azulcocha (including previously disclosed accrued liabilities aggregating approximately US$20 million). Vena will retain its 100% ownership over the significant exploration areas nearby the milling operations, where a multi-million exploration investment has already been made.
Vena intends to continue its efforts to advance its extensive exploration portfolio with Esquilache being the core silver development asset. Geological campaigns, including metallurgical tests of near-surface mineralization have already been started at Esquilache.
For further information on Vena Resources, please visit the Company website at www.venaresources.com, its Facebook page or contact Juan Vegarra, Chairman and CEO at (416) 364-7739, ext. 120 or firstname.lastname@example.org.
This news release contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward- looking statements include, but are not limited to, statements about the timing of the receipt of regulatory and governmental approvals for our projects; the availability of financing for the development of our properties and planned production on reasonable terms; the ability to complete corporate transactions; and the ability to procure ore in sufficient quantities and on a timely basis. In some cases, you can identify forward-looking statements by terms such as "may", "will", "should", "could", "would", "expect", "plan", "anticipate", "believe", "estimate", "project", "predict", "intend", "potential", "continue" and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these risks and uncertainties, the forward-looking events and circumstances discussed in this news release may not transpire, and you should not place undue reliance on these forward-looking statements. We discuss many of these risks in greater detail under the heading "Risk Factors" current Annual Information Form and its other filings with applicable Canadian securities regulators, which is available online at www.sedar. Also, these forward-looking statements represent our estimates, intentions, plans and assumptions only as of the date of this news release. We undertake no obligation and do not intend to update or revise these forward-looking statements, unless required by law. We qualify all of the information presented in this release, and particularly our forward-looking statements, with these cautionary statements.
SOURCE Vena Resources Inc.