15:25 | Lima, Jun. 23 (ANDINA).
Canadian mining company Vena Resources today announced that Trafigura, through its Peruvian subsidiary Catalina Huanca, has commenced capital investment towards bringing the Azulcocha project in Peru 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, 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.
(END) EEP
Publicado: 23/6/2011