Vena Resources Inc., a leading Canadian mining company focused on Peru, yesterday announced an agreement with privately held international commodity trader Trafigura Beheer B.V. to put the Azulcocha Zinc Mine in production.
Per the agreement, Trafigura will invest US$5 million to acquire a 30% stake in a Peruvian subsidiary of Vena, to be formed, valued at US$17 million. Today’s announcement regarding the Azulcocha project correlates with Vena’s plans to fully finance an initial 1,000 tpd mining operation.
“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,” Juan Vegarra, chairman and CEO of Vena stated in the press release.
According to the press release, Vena and Trafigura will combine efforts to achieve full financing needed to put the Azulcocha project in production.