TORONTO, Dec. 12, 2012 /CNW/ - Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM, Peru: VEM, Germany: V1RA, USA: VNARF) announces that it has signed a 15 year agreement with the agricultural association of San Antonio de Esquilache. Under the terms of the agreement, Vena has agreed to payments of 35,000 Peruvian Nuevos Soles per year during the exploration period, 100,000 Nuevos Soles per year during the potential construction and exploitation phase of Esquilache and for an increase in payments of 10% every five years.
Given the importance of working closely with the communities surrounding Esquilache, it was imperative for the success of this project to finalize this agreement so Vena can advance the Esquilache project to eventual production should positive technical results continue. Cerro Creston where the historical high-grade silver mine exists as well as Cerro Mamacocha, where Vena has been focused from the exploration perspective are covered by this land agreement. Vena will continue to work with other stakeholders in the area to close on complementary agreements, but the large parcel of land (605 hectares) controlled by the agricultural association contains enough land for potential sites for tailings ponds, mill infrastructure etc.
In other news, the Company has entered into debt settlement agreements to settle trade payables, management fees and loans, for the aggregate settlement amount of $404,928.18, through the issuance of an aggregate of 2,131,485 common shares in the capital of the Company, at a price of $0.19 per common share. Insiders of the Company will receive 163,158 common shares as a settlement of $31,000 of indebtedness. The common shares issued will be subject to a four-month 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.
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.