Vena Resources, www.venaresources.com – the Canadian mining firm well-positioned globally through a tight network of partnerships with some of the industry’s top players, is targeting Peru via four current projects including a considerable uranium position and has announced the signing of a binding Letter of Intent (LOI) with Toronto-based mineral exploration company Erica Resources Inc.
The LOI stipulates terms of the definitive Joint Venture Agreement (JVA) whereby, starting Dec. 31, 2010, both parties will work to actively advance Vena’s Las Princesas gold and silver operation in northern Peru.
Erica and Vena are a natural team, collectively possessing some of the most experienced management personnel in the industry, together they represent a mining, logistics and financing force to be reckoned with.
This agreement makes possible the kind of success story that Erica wrote when President and CEO, Martin Walter, set about managing/developing Aquiline Resource Inc., which was successfully sold in 2009 to the biggest silver firm on the planet, Pan American Silver Corp.
Also instrumental in the development of Aquiline were former employees, Peter Mullens and Dennis Gibson, Erica’s current VP of Exploration and CFO respectively.
Furthermore, the agreement stipulates that in order to earn a 51% interest in Las Princesas:
• Erica hands over $50k (already paid)
• Erica is required to spend $400k within year-one at Las Princesas
• Erica is required to spend a further $2M within the first three years, including 32,808 ft. (10k metres) of drilling, minimum
• Vena receives 5% of issued/outstanding shares of Erica
Percentage ownership increases are available at the following levels:
• 60% – Erica spends another $5M property-wide within the next six years
• 70% – Erica must successfully execute a feasibility study on the property
• 85% – Erica assumes responsibility for funding mine construction as well as brining the site into commercial production