September 28, 2006 - Toronto, Ontario – Vena Resources Inc. (TSX.V: VEM, Lima: VEM, Frankfurt: V1R, OTC: VNARF) announces that it has acquired a group of concessions in the Huachon area of central Peru. Subject to regulatory approval, the Company has agreed to grant 100,000 shares of Vena to UP Mining Peru E.I.R.L. and S.M.R. Ltd. Milagros de Socorro the owners of these concessions. Additional shares will be granted if key milestones are reached annually plus a 2%-3% NSR depending upon the price of gold.
Local miners working the upper portions of the area are extracting gold bearing quartz vein material. A team of Vena geologists is visiting the Huachon area to take confirmation samples and assess the historic data provided by the property owners. Vena reminds readers that the Company has not yet done sufficient work to verify the project potential. Huachon is in central Peru near the established mining center of “Cerro de Pasco”. Huachon lies in the southern extension of the NW trending regional structure, which hosts the Poderosa, Marsa and Horizonte mines. This area of central Peru has not been well explored using modern methods.
The Qualified Person for this press release is Dr. Greg Myers, a Professional Geologist. Dr. Myers has not visited the property, but has reviewed the historic data used in preparation this press release.
Vena Closes Private Placement
In other news, Vena announces that it has closed the second tranche of a non-brokered private placement by issuing 555,000 units at $0.50 for total private placement proceeds for both the first and second closing of $957,500. Each unit issued comprised one common share and one common share purchase warrant with each warrant being exercisable at an exercise price of $0.75 for a period of 24 months after the Closing Date, provided, however, that, if, at any time following the expiry of the Hold Period, the closing price of the common shares on the TSXV (or such other exchange as the shares of the Company are listed on) is greater than $1.00 for 20 or more consecutive days, the Warrants will be accelerated and will expire on the 20th Business Day following the date of such notice. The securities issued on closing are subject to a four-month hold period and the private placement is subject to regulatory approval. A 5% finder’s fee was paid to certain parties at the discretion of the Company.
Juan Vegarra , Vena’s CEO stated,
“We are pleased that the investment community continues to show its support for Vena. Proceeds from the private placement plus the revenue generated from sales of Zinc ore to Glencore of Switzerland as part of the underground rehabilitation program will be used for the ongoing confirmation drilling campaign in the Azulcocha & Waie Zinc projects leading to a preliminary assessment of a mine restart and a 43-101 report.
We expect to provide a more in-depth update of the Huachon gold project later in October when field crews complete their visits and provide a current assessment and development plans.”
For further information please visit the Company website at www.venaresources.com or contact:
Juan Vegarra – Chairman & CEO (416) 364-7739, ext. 120 – email jvegarra@venaresources.com
Pro-Edge Consultants Inc., Tracy Weslosky or Fred Cowans – Managing Partners
(866) 544-9622 or (416) 581-0177 – info@pro-edge.com
The TSX Venture Exchange does not accept the responsibility for the adequacy or accuracy of this release. Statements in this press release regarding the Company’s business 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.
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