Toronto, Ontario, Canada - Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM, Peru: VEM, Germany: V1RA, USA: VNARF) announces that Venas wholly owned subsidiary Cordillera SA ("Cordillera") was sold to a Peruvian private company for tax losses at the price of 100.000 US $. Cordillera had liabilities to third parties of $ 1,1 million due to transactions related to the subsidiary Azulcocha Mining SA ("Azulcocha Mining"). Azulcocha Mining was sold to Trafigura Beheer BV in November 2012.
In addition, Vena announces that Trafigura is now with his monthly payments in the amount of 100.000 US $ has begun. Like the 28. September and 8. November 2012 announced, Vena has signed a share purchase agreement with Trafigura. Under the agreement, Vena will receive a total of 5 million for Azulcocha Mining and 10% of its net profit ("NPI") for future production. Trafigura may purchase this NPI at any time for an additional $ 2 million. The first payment of 2,5 million US $ was made in November 2012, and the balance of 2,5 million US $ is now being paid in monthly payments of 100.000 US $.
In addition, Vena has announced that it has entered into debt settlement agreements to offset trade payables totaling 118.519,59 $. For this purpose, a total of 1.316.881 common shares of the Company will be issued at a price of 0,09 $ each. The ordinary shares issued are subject to a holding period of four months and one day from the date of issue in accordance with applicable securities law. The transactions under these contracts are subject to certain conditions, including the issuance of necessary permits, including but not limited to Toronto Stock Exchange.
Juan Vegarra, Chairman and CEO of Vena, said: "Our management's efforts to restore our balance sheets despite difficult market conditions are starting to pay off and business results are improving significantly. By offsetting liabilities in excess of $ 1,2 million and the monthly cash flow that can be used in a variety of ways, we expect 2014 to perform positively. We will then focus on advancing Esquilache and supporting Azincourt, our new uranium partner in Peru. "
For more information about Vena Resources, visit the company website at www.venaresources.com, our Facebook page, or contact Juan Vegarra, Chairman & CEO, by phone at (416) 364-7739, App. 120 or by email at [email protected].
Important Notice Regarding Forward-Looking Statements: This press release contains forward-looking statements, particularly regarding the sale of Vena's 50 percent stake in Minergia SAC and the necessary stock exchange approval. Forward-looking statements are often identified by phrases such as “plan”, “expect”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “potentially” and similar expressions. The forward-looking statements are based on certain events and expectations on the part of Vena. Even if Vena believes that the expectations and assumptions underlying the forward-looking statements are justified, the prudent investor should not rely on forward-looking statements, as Vena does not guarantee that they will actually occur. Because forward-looking statements address future events and conditions, they inherently involve risks and uncertainties. Actual results may in any case differ significantly from the results expected in the statements at the respective starting point. In addition to other risks that could affect the forward-looking statements in this press release, there are those disclosed in Vena's MD&A regarding the company's financial condition and results of operations for the three and nine months ended September 30, 2013, and the company's annual information form for the year ended December 31, 2012. Both reports can be found at www.sedar.com. Forward-looking statements are made on the basis of the information available on the date indicated. The company undertakes no obligation to update or revise any such statements in response to new circumstances or the occurrence of previously unexpected events, except as required by law. No liability is assumed for the accuracy of the translation. Please note the original English message.
Source: IRW-Press.com.
