Vena Receives Approval to Commence Milling at its Azulcocha Project
TORONTO, July 13, 2012 /CNW/ - Vena Resources Inc. ("Vena" or the "Company") (TSX: VEM), (LIMA: VEM) (Frankfurt: V1R) (OTCBB: VNARF) (Xetra®: V1R.DE), a Company with strong partnerships with some of the world's largest mining companies, is pleased to announce that it has received all required permits from the Peruvian government to begin formal milling operations at Azulcocha (70/30 JV with Trafigura Beheer B.V. a privately-held international commodity trader). The permit, allows for the treatment of 500 tonnes per day of throughput.
Juan Vegarra, Chairman and CEO of Vena stated: "This is a significant milestone for the Company. Many years of effort have resulted in obtaining the approvals, which we believe marks a new beginning for Vena. A highly energized team is in place to begin the operational phase at Azulcocha and work to allow us to meet our goals of generating a revenue stream in the near term. The Company wants to thank its Peruvian employees, the nearby communities, third party vendors and the Ministry of Energy and Mines for their support."
Vena intends to begin reprocessing high grade tailings at Azulcocha in the near term and is currently negotiating ore supply contracts with several nearby mine operators as part of its planned toll milling efforts. These activities are intended to generate valuable revenue for the Company as well as providing feedstock for the Azulcocha mill in advance of its intended ramp-up to full scale production. The operation will quickly shift from processing tailings to toll milling at full capacity to eventually milling its own ore. Cash flows will be reinvested to grow the operation and to pay current liabilities with stakeholders over time. Vena is working with stakeholders to structure a payment plan that includes a swap of debt for common shares of Vena to minimize cash outlays and provide upside as stock markets rebound eventually.
While operations continue, Azulcocha will continue to review available strategies to improve operational efficiencies to improve project valuation intended to maximize shareholder value.
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.com. 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.