Vena Enters into Letter of Intent to Option the Esquilache, Pucara and Amantina Projects for a Minimum US$30 Million Investment in Exploration, Mine Development and Mill Construction
TORONTO, March 8, 2013 /CNW/ - Vena Resources Inc. ("Vena" or the "Company") (TSX: VEM), (LIMA: VEM), (Frankfurt: V1RA), (OTC-BB: VNARF), (Xetra®: V1RA.DE) announces that the Company has entered into a non-binding Letter of Intent ("LOI") with a private Peruvian mining company (the "Optionee") to earn up to a 75% interest in the Amantina, Esquilache and Pucara projects (collectively, the "Projects") located in the department of Puno, Peru.
The basic terms of the LOI provide for an investment commitment by the Optionee of US$13 million in exploration expenditures for a 65% interest in Vena's Projects and an additional amount of at least US$16 million to fully construct a scalable mill starting at 350 tonnes per day ("tpd") as well as all required investments to prepare a 350 tpd underground mining operation for an additional 10% interest in the Projects. The LOI includes a provision for a sixty (60) day due diligence period by the Optionee. In addition, the Optionee has agreed to participate with a lead order of US$1 million in a private placement in Vena Resources to occur concurrently with the closing of this transaction.
Juan Vegarra, Chairman and CEO of Vena Resources stated: "Now that Esquilache is funded to production, Vena plans to advance its remaining exploration portfolio that includes the largest NI 43-101 compliant Uranium resource in Latin America with its partner Cameco Corporation as well a significant number of polymetallic projects throughout Peru."
The TSX does not accept the responsibility for the adequacy or accuracy of this release. Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
SOURCE Vena Resources Inc.