TORONTO, Aug. 13, 2015 /CNW/ - Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM, Peru: VEM, Germany: V1RA, USA: VNARF) would like to provide a corporate update including the announcement of Juan Vegarra's resignation as Chief Executive Officer and the appointment of Nick Appleyard as interim Chief Executive Officer and other matters related to the outstanding legal matters between Vena and Empresa Minera Los Quenuales S.A. ("LQ"), a Peruvian subsidiary of the Glencore group. The Company is also providing an update related to the US$2.2 million owing from Catalina Huanca Sociedad Minera S.A.C. (a subsidiary of Trafigura Beheer B.V.) to the Company related to the sale by Vena of its 70% interest in Azulcocha Mining S.A. ("Azulcocha Transaction"), (the "Trafigura Receivable").
The Company announces that the board of directors has accepted the resignation of Mr. Juan Vegarra as Vena's Chief Executive Officer, to pursue other ventures. Mr. Vegarra will continue to be Chairman of the board for the Company. Mr. Nick Appleyard has been appointed Interim Chief Executive Officer and Director. Mr. Appleyard has served on the Company's Board of Directors since November 2014 providing technical and strategic skills and significant expertise in Peru. Mr. Appleyard was most recently the Chief Executive Officer of Chaparral Gold Corp. since its formation until it was sold in February 2015 to a subsidiary of Waterton Global Resource Management, Inc. Prior to Chaparral, Nick was the Vice President of Corporate Development for International Minerals Corporation ("IMZ"), where he was responsible for the technical management of all IMZ's exploration and development projects in Ecuador, Peru and Nevada including the oversight and development of the Pallancata silver/gold mine in southern Peru. Mr. Martin Walter will continue his role as President and as a director and the Company has commenced a search to fill the Chief Executive Officer position.
Juan Vegarra, Chairman and former CEO stated, "My resignation as CEO forms part of the management transition that commenced with the Company's amalgamation with Forrester Resources Corporation in September 2014. As the founder of Vena, I am pleased to remain involved as Chairman of the Company and having worked with Nick Appleyard on the Board, I have full confidence in his ability to lead Vena on an interim basis whilst a new permanent CEO is sought. As we near the conclusion of the legal issues that have been ongoing for a number of years, a renewed team will be a positive step to move forward."
Under the Azulcocha Transaction, completed in November 2012, Catalina Huanca Sociedad Minera S.A.C. agreed to pay US$2.5 million in monthly installments (of which three $100,000 installments were paid in 2013) but payments were suspended until certain registrations with the Peruvian Public Registry and administrative matters were completed by Vena. The Company is working prudently to satisfy requirements that are necessary to allow for payments to resume.
Outstanding Legal Matters
As previously reported, the Company commenced an annulment application in the Peruvian courts, seeking to set aside the Arbitral Award to pay US$2.34 million (the "Vena Application") related to the ongoing contract dispute between LQ and Vena in connection with a joint venture agreement on the Azulcocha West Polymetallic Project. It is anticipated that a decision will be delivered shortly (see press release dated February 6, 2015 for further details).
As reported on July 31, 2015, LQ applied to enforce the Arbitral Award against Vena in Ontario in December 2014. In July 2015, Justice Hood, of the Ontario Superior Court of Justice, adjourned (postponed) the enforcement application (the "Adjournment") pending the outcome of the Vena Application. As a condition of the Adjournment, the Company was ordered to pay C$250,000 by August 7, 2015 as security to be held in trust. The Company reports that it did not pay the C$250,000 security at this time. Vena is actively pursuing a number of discussions on these outstanding legal matters and further updates will be provided.
The TSX does not accept the responsibility for the adequacy or accuracy of this release.
SOURCE Vena Resources Inc.
For further information: For further information on Vena Resources, please visit the Company website at www.venaresources.com, or contact Dennis Gibson, Chief Financial Officer, at 416 599 7363 or [email protected]