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Vena Resources Reports 2009 First Quarter Financial Results
May 19, 09 05:40PM
Vena Resources Inc. ("Vena" or the "Company") (TSX:VEM)(LIMA:VEM)(FRANKFURT:V1R) filed its first quarter financial and operating results on Friday, May 15 for the three months ended March 31, 2009.
Given current market conditions, Vena is monetizing several non-core assets to raise funds without diluting existing shareholders. Monetizing measures being implemented include joint ventures, sales of non-core equipment and sales of properties that are not strategic for the long term. These funds, plus funds received from approved VAT recoveries directly from the Government of Peru as well as funding from partners (Cameco, Glencore and Consorcio Minero Horizonte) will enable Vena to continue to deliver shareholder value while minimizing cost structure. As metal prices recover and the global economic crisis eases Vena will reassess investments levels.
From an operational point of view, Vena has been actively exploring for Uranium in a number of project areas in southeast Peru with the technical support of Cameco and Vena has agreed with Cameco that both companies will invest a total of $2.5 million this year in two major drill programs (Lagunillas and Macusani) with the goal of delineating a 43-101 compliant Uranium resource in the near term. Consorcio Minero Horizonte, a Peruvian gold mining company, has completed a series of technical tests on the Pucara project which will assist the Company in determining its plans for the Pucara project. Sudamericana de Carbon, Vena's wholly-owned subsidiary focused on the coal business, is advancing the permitting process for Oyon to increase sales to the local cement manufacturers, as well as purchase land in northern Peru to stockpile and calibrate/classify anthracite coal. Coal demand is forecast to increase in the near term and these sales will generate cash flow in the near term for the Company.
"Over the quarter, we have made significant progress in reducing our cost structure even further. We are focusing our resources on key projects to enhance value as metal prices recover, monetizing non-core assets and building new partnerships," said Juan Vegarra, Chairman and CEO of Vena.
The Company incurred a net gain of $388,592 for the three months ended March 31, 2009 compared to a loss of $2,142,133 in the same period of 2008. The difference was primarily attributed to unrealized foreign exchange and decrease of expenses. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2009, the Company had current assets of $4,134,039 (2008 - $4,252,249) and current liabilities of $3,264,847 (2008 - $3,709,896), providing working capital of $869,192 (2008 - $542,353). All of the Company's financial liabilities and receivables have contractual maturities of less than 90 days and are subject to normal trade terms.
In April and May 2009, the Company received $365,865 from the Government of Peru for VAT reimbursements and an additional amount of $510,000 is anticipated in the next quarter and $480,000 later this year.
Details of the Company's financial results are described in the unaudited consolidated financial statements and Management's Discussion and Analysis for the three months ended March 31, 2009 available on SEDAR - www.sedar.com.
For further information on Vena Resources, please visit the Company website at www.venaresources.com. Interested parties are also invited to visit the Vena Resources IR Hub at