Vena to Draw Down on Standby Equity Distribution Agreement
TORONTO, ONTARIO -- (Marketwire) -- 08/05/10 -- Vena Resources Inc. (the 'Company' or 'Vena Resources') (TSX: VEM)(LIMA: VEM)(FRANKFURT: V1R)(OTCBB: VNARF) announces that it has provided YA Global Master SPV, Ltd. ('YA Global'), a fund managed by Yorkville Advisors, LLC, with notice of its intention to draw down $150,000 under its previously announced standby equity distribution agreement ('SEDA').
In accordance with the terms of the SEDA, the common shares to be issued to YA Global under the drawdown, subject to a minimum price of per share of $0.15, will be priced at 92.5% of the average daily price of the common shares over the ten consecutive trading days following Vena's notice of its intention to draw down on the SEDA. Based on the minimum price, the maximum number of shares to be issued under this drawdown is 1,000,000. Following the closing of the draw down, the actual price per share and the number of shares that were issued will be disclosed in a subsequent press release.
On May 5, 2010, Vena filed a short form base shelf prospectus with the securities commissions of British Columbia, Alberta and Ontario. A copy of the final short form base shelf prospectus is available on SEDAR at www.sedar.com or may be obtained upon request to the Company. In connection with the drawdown, Vena will also file immediately following the ten-day pricing period a prospectus supplement to its short-form base shelf prospectus to qualify the shares to be issued to YA Global under the drawdown notice.
In addition, Bradford Bachinski Limited, Exempt Market Dealer, will receive a cash commission equal to 7.5% of the draw down amount and broker warrants entitling the holder thereof to acquire common shares equal to 7.5% of the number of shares issued under the draw down and at an exercise price equal to the issue price of the shares issued under the draw down.
About Vena's Standby Equity Distribution Agreement (SEDA)
On March 31, 2010, Vena entered into the SEDA with YA Global Master SPV Ltd., a fund managed by Yorkville Advisors, LLC. Under the agreement, YA Global has committed to provide up to $10 million of capital for a period of 60 months, at Vena's discretion, through the purchase of newly issued common shares of the Company.
About Vena Resources
Vena Resources Inc. is a Canadian mining company focused on the exploration and development of Peru's mineral potential. Employing a model of diversification across metals and regions in Peru to mitigate investment risk, the Company consists of four divisions: Mining, Clean Energy, Precious Metals and Base Metals. Together with the Company's strategic partners, Cameco, Gold Fields, Glencore and Trafigura, Vena will advance its significant portfolio of almost 75,000 hectares this year. Through its board of directors and advisors, Vena Resources possesses a unique quality of skills and experience in management, mining and finance globally.
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.
The TSX does not accept the responsibility for the adequacy or accuracy of this release.
Contacts:
Vena Resources Inc.
Juan Vegarra
Chairman & CEO
(416) 364-7739, ext. 120
jvegarra@venaresources.com
Vena Resources Inc.
Andres Tinajero
Chief Financial Officer
(416) 361-2838
atinajero@venaresources.com
www.venaresources.com