Venga Aerospace Systems Inc.

Venga Aerospace Systems Inc.

July 27, 2012 15:56 ET

Venga: GMI Releases NI 43-101 Report Confirming Merit of GMI's Concessions; GMI Agrees to Extend Tawana's Option; GMI's Exploration Licence Revoked Pending GMI's Regulatory Compliance

TORONTO, ONTARIO--(Marketwire - July 27, 2012) - Venga Aerospace Systems Inc. (TSX VENTURE:VAV)(PINKSHEETS:VNGAF) (the "Company") advised that Venga's mining affiliate, Global Mineral Investments, LLC ("GMI"), released a National Instrument ("NI") 43-101 compliant report (the "Technical Report") which has determined that GMI's existing exploration licence situated in eastern Liberia is 'an exploration project of merit' and has recommended that a more comprehensive, two phase exploration programme be carried out. The Technical Report, which is compliant with NI 43-101 and companion policy NI 43-101CP and Form 43-101FI, was prepared by independent Qualified Person Pierre C. LaBrèque P.ENG. of La Prairie, Quebec and provides a technical review of GMI's 400 square kilometer concession/exploration area (the "GMI Concession" or "Licenced Area").

In the preparation of the Technical Report, Mr. LaBrèque visited the GMI Concession for a ten day period in May of 2012 and relied on information gained from published geological reports including the US Geological Survey of Liberia and Tawana Resources NL's ("Tawana") 2011 and 2012 geochemical surveys and from the direct, on-site discussions that Mr. LaBrèque had with GMI's representatives who were familiar with the GMI Concession and the area in general. The Technical Report affirms Mr. LaBrèque's opinion that all information set out in the report, and the conclusions on which such information is based, should be considered reliable.

The Technical Report confirms that the GMI Concession is underlain by Precambrian rock formations which belong to the West African Precambrian (Guinean) shield and that the Dugbe shear, a major east/west structural feature in the area is believed to cross the central part of the Licenced Area. The Technical Report further notes that Tawana's geochemical survey clearly outlined two anomalous zones in the GMI Concessions that were characterized by more than 30 ppb Au and up to 1 g/t in soils. Mineralization in the GMI Concessions, the report states, mainly consists in "native gold occurring as a fine powder/dust and in flakes of different sizes" and is "present in both the alluvial and the eluvial parts" of the Licenced Area's overburden. The Technical Report confirms that a few surface samples were taken from various parts of the Licenced Area and forwarded to Laboratoire D'Analyse Bourlamaque Ltėe. of Val d'Or, Quebec for analysis to "verify the presence of gold". The results of the sampling programme showed up to 1.49 g/t which confirmed the "presence of gold" in the Licenced Area and which results "should spur on further exploration".

In the conclusion to his report, Mr. LaBrèque wrote:

"The geology underlying the exploration licence of Global Mineral Investments, LLC is most favourable to host gold deposits in the underlying geological formations and in the overlying overburden (placer deposits). The area under consideration, encompassing the property of GMI, is host to a number of gold artisanal mining operations. Several places are still actively mined by those informal miners and several other places have been in the past targets of such operations.

There are several interpreted possible shear zones which have been outlined within the limits of the exploration licence. The most prominent is the eastern extension of the Dugbe shear zone which crosses the middle part of the concession.

As all experienced explorationists are aware, features like the presence of shear zones are positive for gold exploration. The fractures and stockwork generated by shearing/faulting favour the formation of auriferous quartz veins and lenses, so their presence cannot be overlooked.

Some 20-40 km east of the limits of the licence of GMI, major discoveries have unveiled two deposits (Hummingbird) totaling some 2.8 Moz Au while Equator Resources will drill test the Bukon Jedeh Gold anomaly in order to determine its economic potential. All these gold occurrences are located in the neighbourhood of the Dugbe shear.

In a general way, the geology in the surroundings of the Hummingbird and Equator discoveries is the same as that underlying the exploration licence of GMI. So, gold deposits may be found in both places, in the bedrock and in the overburden as alluvial and eluvial placers."

The author of the Technical Report, Mr. Pierre LeBrèque, graduated from the Ėcole Polytechnique (Faculty of Engineering), University of Montreal in 1971 with a B.A. Sc. degree in Geological Engineering. Mr. LeBrèque has practiced his profession continuously since his graduation and has extensive experience in all phases of mining exploration and development in both Canada and internationally, including participating in mining projects situated in such countries as Madagascar, Sierra Leone, Angola, Nigeria, Algeria, Mali, Peru, Bolivia, Mongolia and Kazakhstan. The mining operations that Mr. LeBrèque has participated in include the exploration and development of gold, silver, uranium, zinc, lead, bentonite and kieselghur projects. Mr. LeBrèque is a member in good standing of the Order des Ingėnieurs du Quebec which is an official association legally created by the Government of Quebec to supervise the practice of professional engineering and applied sciences. Mr. LeBrèque was a member of an advisory committee that provided recommendations to the Securities Commission of Quebec concerning the guidelines used to accept technical reports produced to support public financing of mining exploration companies.

The Company further announced that it has been advised by GMI that Tawana and GMI have agreed to extend the option period within which Tawana has to finalize its purchase of the GMI Concessions from the originally stipulated date of June 28th 2012 to September 28, 2012. "This short extension will allow the parties, in conjunction with the Liberian regulatory authorities, an opportunity to work out the most effective way for GMI to legally transfer title to our concessions to Tawana," stated GMI's president, Jon O'Regan. "The contracts to effect the proposed transfer of the concessions are being finalized and both parties are working together to expedite the transfer by the new September 28th deadline or sooner, if possible," continued O'Regan.

Venga further announced that GMI has advised the Company that the Liberian Ministry of Lands, Mines and Energy has revoked GMI's exploration licence for the GMI Concessions for alleged regulatory breaches. "We strongly believe that the actions of the Ministry were unwarranted and in conjunction with Kiwi Inc. and Tawana we are taking the necessary steps to resolve this situation," stated O'Regan. "All licence renewal fees for our concessions have been paid until April of 2013 and we are confident that this current misunderstanding will be resolved in our favour," continued O'Regan.

About GMI - Global Mineral Investments LLC is a U.S. based private corporation that has acquired and is developing gold concessions in Sinoe County, Liberia.

About Tawana - Tawana Resources NL ( is a public company listed on the Australian Exchange with its registered office located in Perth, Australia. Initially, the company explored for diamonds in South Africa, Botswana and Australia. With the introduction of new board members and new management, Tawana reinvented itself into a West African focused gold explorer. In April 2010, Tawana announced the appointment of Warwick Grigor as non-executive Director and Chairman. Mr Grigor is the Executive Chairman and Head of Research at BGF Equities Pty Ltd. In June 2010 the company announced the appointment of Lennard Kolff van Oosterwijk (Len Kolff) as CEO. Mr. Kolff joined Tawana having worked over the past decade at Rio Tinto, where he was involved in a range of high profile projects including the Simandou iron ore project in West Africa and the Northparkes Cu·Au mine in NSW, Australia.

In December of 2010, Tawana announced a strategic alliance with Gryphon Minerals Ltd (ASX:GRY) and in February, 2011, the acquisition of two highly prospective mineral exploration licences in Liberia, West Africa. Under the terms of this alliance, Gryphon will assist Tawana with the identification, acquisition and exploration of mineral permits in West Africa which are outside Gryphon's core growth strategy. Gryphon will also assist Tawana establish itself in West Africa and provide high level technical, operational and logistical support. Gryphon is Tawana's major shareholder.

As part of its legacy assets, Tawana holds a 6.76% indirect equity interest in the Avontuur Manganese (108.9Mt at 38.6% Mn) and Meletse Iron Ore (47.6Mt at 62.9% Fe) Projects through its 26% equity stake in Rakana Consolidated Mining Pty Ltd., the joint venture partner of Aquila Resources Ltd. in the Thabazimbi Joint Venture, South Africa. In March of 2011, Tawana raised $4.5 million via share placement of 100 million shares at 4.5 cents with BGF Equities Pty Ltd. acting as the lead manager.

Tawana is actively exploring for gold and base metals in Liberia and continues to review additional opportunities in Liberia and West Africa as part of its ongoing growth strategy.

About Venga - Venga Aerospace System Inc. is a Canadian public company that is currently listed on the TSX Venture Exchange. Venga operates or has an investment in three business units: aerospace; 3D graphics and gold mining in West Africa. Venga has a 20% equity interest in GMI.

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that may cause the Company's results to differ materially from expectations and speak only as of the date hereof.

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