TORONTO, Oct. 19, 2012 /CNW/ - Vena Resources Inc. ("Vena" or the "Company") (TSX: VEM), (LIMA: VEM), (Frankfurt: V1RA), (OTCBB: VNARD), (Xetra®: V1RA.DE), a Company with strong partnerships with some of the world's largest mining companies, is pleased to announce that it has signed an agreement with OMAY S.A., a private group of Peruvian investors ("OMAY") to advance the exploration and development of the Compin property. The Compin property consists of the 1,000 hectare OMAY 200 mining concession located in the Alto Chicama region of La Libertad Department in northern Peru, approximately 65 kilometres northeast of Trujillo (the "Property").
The agreement with OMAY has a five year term and includes an initial cash payment to Vena of US$100,000 on signing followed by further annual payments totaling US$1,000,000. OMAY can earn a 100% interest in the Project subject to a scalable net smelter return ("NSR") royalty as described below. During the initial four years of the agreement OMAY must spend a minimum of US$800,000 on exploration and development and publish a report of indicated reserves. If the indicated reserves are in excess of 500,000 tonnes at 5+ g/t gold equivalent the agreement provides that OMAY will begin construction of a processing plant with a minimum capacity of 250 tonnes per day in the fifth year.
The royalty provision covers all commercial minerals produced from the Property from the date of signing the agreement and is based on the following scale of price per ounce of gold: US$2,500, a 3.5% NSR is payable. In addition there will be a 1.5% NSR payable to Vena for any third party ore processed at a plant built on the Property. OMAY has the right to purchase all or part of the two royalties based on a total purchase price of $US3,000,000.
The agreement is structured as a lease with option to purchase as the Property has the potential to produce gold and silver from oxide material either by heap leaching or treatment at a nearby small mill during the period that the sulfide potential of the mantos is being explored.
This press release has been reviewed and approved by David Bent, Vena's Vice President of Exploration and Qualified Person under NI 43-101.
Juan Vegarra, Chairman and CEO of Vena Resources stated, "The Company plans to continue to sell non-core assets and focus its efforts in developing its precious metals portfolio with focus on the Esquilache silver project."
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.
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For further information on Vena Resources, please visit the Company website at www.venaresources.com, its Facebook page or contact Juan Vegarra, Chairman and CEO at (416) 364-7739, ext. 120 or [email protected].