Vena enters into joint venture to develop Pucara project

Vena Resources Inc. announced that it has signed a Letter of Intent with IIMPUL Peru, a Peruvian gold/copper production and trading company, to put the Pucara gold/copper project into production as soon as permits are received.
The Letter of Intent, which will be set out in a definitive Joint Venture Agreement, involves four key revenue streams which will be funded by IIMPUL and from future cash flow generated by the Joint Venture:

"JV Mine": To develop and mine the underground gold/copper veins at Pucara. It is expected that by the end of 2010, Vena will be able to recover its US$2 million (approximate) invested so far in developing Pucara. The remaining after-tax profit will be divided 50/50 between the two partners.

"JV Expansion": The identification and purchase of high-grade copper (greater than 3% Cu) properties in the vicinity of the Pucara project with investments and gains/losses to be split 50/50 by Vena and IIMPUL. It is intended that the JV-Mine operation will fund these acquisitions. Vena is presently reviewing technical data from two nearby operations.

"JV Mill": To install a scalable mill capable of processing high-grade copper ore (greater than 3% Cu). The mill is expected to have an initial capacity of 200 tons-per-day (tpd) with the expectation that the mill processing rate will reach 5,000 tons-per-month of at least 3% Cu by the end of the first year of operations and continue to expand. 50% of the feed will come from the existing Pucara project. Any gains or losses resulting from this operation will be split 50/50 between Vena and IIMPUL.

"JV Toll Milling": This is IIMPUL's core expertise in Peru and given Pucara's strategic location (60 kilometres from Juliaca) and outstanding infrastructure, the JV intends to provide custom milling services to several local copper miners. IIMPUL has already identified and is negotiating with several miners with high-grade copper veins ready to be serviced by the joint venture. Any gains resulting from this operation will be split 70/30 in favor of IIMPUL.

Publication: Andina - English Newswire
Provider: Andina
August 19, 2009