/NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION IN
TORONTO, Sept. 24, 2012 /CNW/ - Vena Resources Inc. ("Vena" or the
"Company") (TSX: VEM, LIMA: VEM, Frankfurt: V1R, OTC-BB: VNARF, Xetra®:
V1R.DE), announces that its 70% owned subsidiary, Azulcocha Mining S.A.
("Azulcocha") has been working with Trafigura Beheer B.V. to
restructure its shareholding and respond to a notice of default
received from Trafigura Beheer B.V. and Consorcio Minero S.A.,
Trafigura's Peruvian subsidiary (collectively, "Trafigura").
As disclosed in the Company's most recent Management's Discussion and
Analysis and Financial Statements for the second quarter ended June 30,
2012, Azulcocha was behind in one loan payment and the Company is now
in default in loan payments aggregating US$3,199,332, together with
interest in connection with loans made by Trafigura to Azulcocha to
complete the construction of the now fully permitted 500 tpd mill.
Trafigura has notified Azulcocha that it is in default of its payment
obligations and has demanded payment of the overdue amounts and stated
that it may take legal action against Azulcocha if payment is not made.
Over the last two months, Azulcocha and Trafigura have had ongoing
discussions regarding these liabilities, including discussions that
would provide for the sale of Vena's 70% ownership of Azulcocha to
Trafigura. The Company's board of directors created a special
committee of independent (non-management) directors to evaluate a
proposal made by Trafigura and continues to work on details to finalize
a potential share purchase agreement that would settle all unpaid
amounts that are due and payable by Azulcocha to Trafigura while
amending its existing agreements. As part of this process, Vena and
Trafigura also agreed to allow interested third parties to evaluate
Azulcocha as a potential purchase. The Company is working at
finalizing a binding agreement in the near term and is actively
discussing and seeking other potential transactions, and is continuing
to use every effort to reduce or delay expenditures, seek additional
capital, and / or restructure or refinance its indebtedness.
The TSX does not accept the responsibility for the adequacy or accuracy
of this release.
Forward Looking Statements -The forward-looking statements included in this press release 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 year ended December 31,
2011 and the six month period ended June 30, 2012 as well as the
Company's Annual Information Form. 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.
For further information:
on Vena Resources, please visit the Company website at www.venaresources.com, its Facebook page or contact: Juan Vegarra - Chairman & CEO - (416) 364-7739, ext. 120 or email@example.com.