Vena Acquires 100% of Coal Company in Peru and Provides Development Plans for Peruvian Anthracite Coal Market
Wednesday, August 13th 2008
Vena Resources Inc.announces it has now acquired 100% of Sudamericana de Carbon (SDC), a Peruvian company focused on the exploration, development and mining of anthracite coal. As previously announced on February 26, 2008, Vena had entered into an agreement with SDC whereby Vena could earn a 70% interest in SDC by spending US$2.5 million in exploration costs. To acquire 100% of SDC, Vena has agreed to issue 750,000 common shares in lieu of the US$2.5 million investment. In addition, the Company has agreed to issue 200,000 options to each of the three founders of SDC with each option being exercisable at $0.60. The acquisition is subject to regulatory approval.
“This acquisition further expands and strengthens Vena’s anthracite coal position in Peru,” said Juan Vegarra, Chairman and CEO of Vena Resources. “Vena is now positioned to capitalize on the growing demand for clean energy in Peru and neighboring countries.”
According to 2006 report by the USGS, the most extensive and potentially most productive coal producing areas in Peru are the “Northern Anthracite Field” in northern Peru, which includes the Alto Chicama and the Santa basins. Further, a government study (INGEMMET) published in October 2000 estimated coal resources in Peru to be 1,054 million tones, with approximately 52% of those anthracite/meta-anthracite resources estimated to exist in the Alto Chicama region. This tonnage is historical and non 43-101 compliant.
Field investigations are underway in both the Alto Chicama and the Santa basins (located in the Ancash and La Libertad departments) to significantly increase SDC’s portfolio of producing assets. All properties being evaluated are located in well known anthracite producing areas. Currently, there are no large scale commercial anthracite operations in Peru and local producers have been incapable of satisfying Peruvian market participants that have a growing demand in excess of 500,000 tonnes per annum.
Field assessments of these properties by SDC geologists has confirmed excellent mining potential of anthracite seams that outcrop over hundreds of metres and vary in thickness from 0.9 to 2.0 metres.
SDC’s immediate commercial plans include the purchase of an additional briquetting plant to meet the needs of several clients including local steel producers. During the first half of 2008, SDC supplied a local mill with anthractice from a small pilot mining operation in Alto Chicama. The average quality of the mined anthracite was: 81% FC, 4% VM, 15% ash and 0.7% sulphur.
SDC’s experienced team of coal experts include: Carlos Soldi, Roberto Obradovich, Luis Moran and Rolando Carrascal. Carlos Soldi is a Civil and Mining Engineer with 30 years experience in mining and environmental engineering. He is a founder of SDC and currently acts as General Manager. Prior to joining SDC he was Director of Procarbon, Peru’s national coal agency a position he held during his academic career as Head of the Mining Engineering Department of the Catholic University for 23 years. Roberto Obradovich has a BA degree and more than 30 years experience in the mining industry both locally in Peru and internationally as well. He is also a founder and currently responsible for business development for SDC. Prior to joining SDC, Mr. Obradovich was an independent businessman involved in the export of phosphate. Luis Moran is a Chemical Engineer with many years in the Peruvian mining industry in senior positions both in the private and public sectors. He too is a founder of SDC and focuses on technical aspects of SDC’s portfolio. Rolando Carrascal holds a PhD in Geology and has 25 years of experience in coal and mineral exploration. Mr. Carrascal is a consultant to SDC and is well known in the Peruvian coal exploration industry and is a co-author of a comprehensive technical assessment book on Peruvian coal resources. This experienced team coupled with Rod Ogilvie, Vena’s Vice President of Engineering who has previous experience with Fording Coal, Denison Mines, and CVRD Mongolia, makes a strong technical team to advance the anthracite exploration, development and mining in Peru.
