TORONTO, Feb. 6, 2015 /CNW/ - Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM, Peru: VEM, Germany: V1RA, USA: VNARF) hereby clarifies and retracts certain statements made in two past press releases titled, "Vena Provides Update on Azulcocha West Polymetallic Project", that were issued on May 26, 2014 and October 8, 2014 respectively (together the "Press Releases"), and specifically certain statements made concerning Empresa Minera Los Quenuales S.A. ("LQ"), individually and as part of the Glencore group.
The Press Releases in part contain statements about the decision rendered in the arbitration that was conducted in Peru before a three-member arbitral tribunal (the "Tribunal") concerning a contract dispute between LQ and Vena relating to the Azulcocha West Polymetallic Project (the "Project").
The Arbitration commenced in May 2012 and the Tribunal's award (the "Arbitral Award") was delivered in May 2014. In July 2014, Vena filed a Request for Annulment of the Arbitral Award with the Superior Court of Lima. As of the date of the issuance of this press release, the Request for Annulment has been admitted by the Peruvian Court but has not been determined.
Vena would like to clarify and further retracts any statements in the Press Releases that suggest or imply that the Tribunal held that LQ, individually or as part of the Glencore group, performed drilling without the required authorisations or permits, concealed technical results contrary to contract or law, or breached the Agreement. Vena regrets these comments.
While Vena disagrees with the majority of the Tribunal's decision, it believes it's in the best interests of all parties to clarify both LQ's position and the decision rendered in the Arbitration.
To clarify, the majority of the Tribunal held that:
- the 2006 option agreement between LQ and Vena (the "Agreement") had been modified and extended by the parties;
- Vena, Vena Peru S.A. and Azulcochamining S.A. breached the Agreement;
- Vena, Vena Peru S.A. and Azulcochamining S.A. must jointly pay compensation for damages to LQ in the amount of US$ 2,342,092.51 in damages; and
- Vena's counterclaim was rejected.
A member of the Tribunal dissented with the majority's decision.
The TSX does not accept the responsibility for the adequacy or accuracy of this release.
SOURCE Vena Resources Inc.
For further information: please visit the Company website at www.venaresources.com, or contact: Juan Vegarra, Chairman and CEO at 416 364 7739, ext. 120 or [email protected] or Martin Walter, President at 416 599 7363 or [email protected]