Vena Resources Inc.
OTC Bulletin Board : VNARF

Vena Resources Inc.

June 23, 2011 09:42 ET

Vena and Trafigura Improve Strategic Agreement for Azulcocha Mine

TORONTO, ONTARIO--(Marketwire - June 23, 2011) -


Vena Resources Inc. ("Vena" or the "Company") (TSX:VEM)(LIMA:VEM)(FRANKFURT:V1R)(OTCBB:VNARF)(XETRA®:V1R.DE), a Company with strong partnerships with some of the world's largest mining companies, is pleased to announce that Trafigura through its Peruvian subsidiary "Catalina Huanca" has commenced capital investment towards bringing the Azulcocha project to production. Vena and Trafigura have negotiated new terms to fast-track the mine development and to work jointly with financial institutions to close on a leasing agreement. Azulcochamining SA ("Azulcochamining"), the Peruvian company that controls the Azulcocha mine, is relying on the balance sheets of its shareholders Vena and Catalina Huanca to guarantee project execution with Peruvian financial institutions.

Trafigura has exercised its option to acquire 30% of the Peruvian company and Vena has agreed to lend Azulcochamining an equal amount to meet the capital expenditures required by the operation. Funds are being disbursed to build the infrastructure and support services required for the milling facility and for mine preparations. Azulcochamining has already invested in preliminary work on processing plant, tailings dam, completing key infrastructure facilities and purchasing long lead mill components (e.g. crusher, ball mill, filters).

Both companies are working with a group of banking institutions in Peru to close on a leasing agreement to fund any remainder of the capital expenditures required. Azulcochamining is reviewing term sheets from several institutions and expects to close on a leasing facility shortly.

As part of this enhanced agreement, Vena has regained 100% control of the exploration concessions previously known as "Azulcocha West". Vena is creating a new company, Zincocha SA, that will own and develop these assets and economic resources attained from these areas will be milled at the nearby Azulcocha mill. Vena is currently reviewing all technical data from previous drill programs, and is currently assaying un-assayed core from six drill holes executed by the previous operator. Vena has expanded its geological surface exploration to quickly define a drill program in 30 showings identified in these concessions including the Maria Fe skarn (Zn/Ag) and the Recuperada (Ag/Pb) structures.

For further information on Vena Resources, please visit the Company website at or its Facebook page.

Statements in this press release regarding the Company's business, plans, intentions, proposed Offering and use of proceeds thereof, which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's current Annual Information Form and its other filings with the various Canadian Securities Regulators, which are available online at www.sedar.

Shares Outstanding: 123,601,658

Fully-Diluted: 158,641,664

The TSX does not accept the responsibility for the adequacy or accuracy of this release.

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