Vena Improves Balance Sheet Significantly - Working Capital Increase by $1.2 Million and US$2.5 million Payment Stream Has Begun
TORONTO, Dec. 2, 2013 /CNW/ - Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM, Peru: VEM, Germany: V1RA, USA: VNARF) announces that Cordillera S.A., a 100% owned subsidiary of Vena ("Cordillera") has been purchased for US$100,000 by a private Peruvian company for tax loss purposes. Cordillera had US$1.1 million dollars in liabilities owed to third parties from transactions related to Azulcocha Mining S.A. ("Azulcocha Mining"), a subsidiary company that was sold to Trafigura Beheer B.V. last November 2012.
Vena is also pleased to announce that the monthly payments of US$100,000 from Trafigura have commenced. As announced on September 28 and November 8, 2012, Vena entered into a share purchase agreement with Trafigura which states that Vena is to receive a payment of US$5 million for Azulcocha Mining plus the grant to Vena of a 10% Net Profit Interest ("NPI") on future production, which NPI can be purchased for an additional US$2 million at any time by Trafigura. The initial payment of US$2.5 million was paid in November 2012 and the balance of US$2.5 million is being made in US$100,000 monthly payments which have just commenced.
Vena also announces that it has entered into debt settlement agreements to settle trade payables for the aggregate settlement amount of $118,519.59, through the issuance of an aggregate of 1,316,881 common shares in the capital of the Company, at a price of $0.09 per common share. The common shares issued will be subject to a four-month and a day hold period from the date of issuance in accordance with applicable securities laws. The transactions contemplated under the debt settlement agreements are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including that of the Toronto Stock Exchange.
Juan Vegarra, Vena's Chairman and CEO, stated, "Management's efforts to restructure our balance sheet under difficult market conditions are beginning to pay off with significant improvements to the bottom line. With over $1.2 million in liabilities removed and a monthly payment stream that can be monetized in different ways, we can foresee a positive trend for 2014 as the Company focuses its resources to advancing Esquilache and supporting Azincourt, our new Uranium partner in Peru."
This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by Vena. Although Vena believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Vena can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in Vena's management discussion and analysis of the financial condition and results of operations for the three and nine month periods ended September 30, 2013 and its annual information form for the year ended December 31, 2012, which are available at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Vena undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Vena Resources Inc.