Valencia Ventures Inc.

Valencia Ventures Inc.

October 05, 2009 08:31 ET

Valencia Sells Interest in Cachinal Silver Project-Chile

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2009) Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia") today announced that it has entered into an agreement to sell up to a 100% interest in its Cachinal Silver Project, Chile to Apogee Minerals Ltd (TSX VENTURE:APE) ("Apogee").

Under terms of the Agreement, Apogee will purchase 75% of Valencia's interest in the Property by paying $200,000 in cash and issuing 3 million units of Apogee where each unit will comprise one Apogee share and one Apogee warrant with an exercise price of $0.25 for a period of 12 months. Apogee will have the option to purchase the remaining 25% interest by paying Valencia $1 million at any time prior to the third anniversary of the definitive agreement.

This sale and option agreement represents the completion of the efforts of Valencia management to dispose of an interest in its Chilean properties or its Chilean subsidiary that holds interests in the Cachinal and Nuevo Juncal silver projects in Chile, in order to fund ongoing expenditures. Valencia is continuing discussions with a third party who expressed an interest in the Nuevo Juncal property; however, at this point there is no certainty that a sale or joint venture agreement will be reached. Valencia is also seeking a new opportunity that would enable the Company to raise additional financing such that it can grow shareholder value.

Valencia's President & CEO, Mr John Begeman stated: "Apogee's offer to purchase an initial 75% interest in the Cachinal property will allow the Company to maintain an interest in the Cachinal Silver Project, where we believe there remains potential for the discovery of additional silver resources, while minimizing the financial costs to the Company." He added: "We wish them every success in their efforts to make additional discoveries."

Completion of the acquisition remains subject to, among other things, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. The acquisition is a non-arm's length transaction for the purposes of the TSX Venture Exchange as Apogee and Valencia have a common director, being Mr. Stan Bharti, and a common officer, being Mr. Greg Duras who is the Chief Financial Officer of both Apogee and Valencia.

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Forward Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes ''forward-looking information'' under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the disposition of the Cachinal property, receipt of regulatory approvals, mineral resource estimates and the ability to realize such estimates; projected mineral production and economics of such production; economic and scoping studies, projected capital and operating expenditures; metal prices; permitting time lines and permitting; availability of skilled labour; ability to develop mining operations; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as ''plans'', ''expects'' or ''does not expect'', ''is expected'', ''budget'', ''scheduled'', ''estimates'', ''forecasts'', ''intends'', ''anticipates'' or ''does not anticipate'', or ''believes'', or variations of such words and phrases or statements that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will be taken'', ''occur'' or ''be achieved''. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the mineral resources are based on the assumptions and parameters set out above and on advice from independent, qualified consultants. Estimates regarding the economics of projected production are based on preliminary analysis conducted by Valencia management and have not been verified by independent experts. Assumptions underlying these estimates include future metal price projections, ability to finance development costs of such development, research and experience of Valencia management. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks described in the public record of the Company posted under the profile of the Company on SEDAR at Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


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