Vena Resources (VEM.to) nails down its deal on Azulcocha

Vena Resources German ticker (V1R.f): A YTD high set today, with the
company now making good on its promises and plans

Here below is the very solid news release sent out by Vena Resources (VEM.to) this morning. The terms of the deal look good at first sight and it means the major part of a soon-to-be working asset stays inside the company (this time it's easy and fun to say "Azulcocha is going to be a mine"). It also explains why VEM recently hired a very experienced minebuilder/mine operator. The news has gone down well in Germany trading, with the stock up 3.4% and now, notably, all those people that recently entered the stock on a German newsletter recommendation are now in the money (by at least 10%, and many much more than that). Satisfied investors = holders.

But the main thing here is that VEM really has done a significant, solid, positive deal and it's about to leave the realm of near-producer and will become a producer. No small achievement, folks...take that to the bank. Flash update coming for subscribers later (once i've played with numbers).

TORONTO, ONTARIO--(Marketwire - 05/03/10) - Vena Resources Inc. (TSX:VEM - News)(Lima:VEM - News)(Frankfurt:V1R - News)(OTC.BB:VNARF - News), a Company with strong partnerships with four of the world's largest mining companies, is pleased to announce that it has entered into an agreement with Trafigura Beheer B.V. ("Trafigura"), a privately-held international commodity trader, to negotiate a transaction in which Trafigura will invest US$5 million to acquire a 30% minority interest given a pre-production valuation of US$17 million in a Peruvian subsidiary of Vena to be formed which will hold the Azulcocha project (mine, tailings and Azulcocha West) and would support Vena's efforts to fully finance an initial 1,000 tpd mining operation. As part of the transaction, Vena and Trafigura will negotiate a life of mine offtake agreement for the full concentrate production at international market terms agreed annually.

Given the current development stage of Azulcocha with its known NI 43-101 compliant indicated resources and the NI 43-101 compliant reserves from the tailings deposit (both reports filed on SEDAR) as well as exceptional exploration upside underground and at Azulcocha West, Vena and Trafigura have agreed to work together towards achieving full financing of the project to put this project in production.

Juan Vegarra, Chairman and CEO of Vena commented:

"We believe that together with Trafigura we can substantially increase the amount of known resources/reserves in a short term. It is important to emphasize that less than 1.0 million tons out of the 3.2 million tons of historical resources have been confirmed at the Azulcocha Mine to date. Given the enhanced joint venture with Glencore only 6 kilometres to the west of the Azulcocha mine, the potential to find incremental resources is likely and if confirmed, should enable us to double the initial 1,000 tpd mill capacity quickly."