Vena Resources, a Company with strong partnerships with four of the world's largest mining companies, recently announced that it has enhanced its agreement with Trafigura Beheer B.V., a privately-held international commodity trader, to invest immediately in the Azulcocha project with the goal to increase the known resources/reserves and complete all the engineering required for an up to 2,000 tpd operation including a new tailings deposit.
To advance the core agreement already in place, Trafigura will lend to Azulcocha Mining SA, a wholly-owned subsidiary of Vena Resources, US$2.5 million in the form of a 9% convertible debenture with a two year term exercisable into common shares of Azulcocha Mining SA for a 15% ownership of the Azulcocha Regional Project. In addition, Trafigura has the option to increase its participation up to 51% in Azulcocha Mining SA if additional milestones are achieved. Vena will grant 4,016,913 warrants to Trafigura, such warrants being exercisable as to 2,272,727 warrants exercisable into common shares at $0.33 for a period of 18 months post closing and 1,744,186 warrants exercisable into common shares at $0.43 for a period of 24 months post closing.
The US$2.5 million are earmarked to complete the following significant milestones:Complete rehabilitation of mining levels -40, 0 and 115 to prepare 586,000 tonnes of ore for mining. Underground development of 300 metres of crosscuts and exploration drifts at level -40 to enable a 12-hole, 1,000 metre underground drill program intended to upgrade 256,000 tonnes of resources.
Complete detailed engineering of a 2,000 tpd processing plant and supporting tailings deposit. Modification of the existing EIA to include an 8 million tonnes tailings deposit. Complete all required permits to begin mill construction by mid-2011.
Juan Vegarra, Chairman and CEO of Vena commented, "Together with Trafigura we have decided to amend the currently approved 500 tpd EIA and overall engineering project to support a 2,000 tpd operation including a larger tailings deposit and to increase the tonnage and upgrade the resource quality of the underground mine. Vena will be releasing an updated NI 43-101 in the near future which will merit a larger operation leading to lower operating costs allowing the Company to better deal with the current volatility in the Zinc market and be ready to scale up operations as the global economy rebounds in the near-term."
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DATE
Jul 27.10 
Vena's Partner Trafigura Investing US$2.5 Million to Advance Azulcocha Zinc Mine to Production