Verena Minerals Corporation

Verena Minerals Corporation

September 22, 2005 16:31 ET

Verena And Kinross Sign Exploration Agreement

TORONTO, ONTARIO--(CCNMatthews - Sept. 22, 2005) - Verena Minerals Corporation (TSX VENTURE:VML) ("Verena" or the "Company") is pleased to announce that it has entered into a Letter Agreement with Kinross Gold Corporation ("Kinross") on the Company's 100% owned Monte do Carmo project, located in Tocantines, Brazil (the "Project"). This Agreement is contingent upon Verena receiving notice of renewal of title from the DNPM in Brazil. On September 14, 2005 the DNPM declared Verena's priority to the exploration rights on the Monte do Carmo property in the official gazette and expects the alvara will be published within 10 days.

After the publishing of the alvara a definitive joint venture agreement will be signed. Kinross will spend a total of US$2,000,000 in exploration related work on the property over a three year period. Once the US$2,000,000 has been spent Kinross shall vest with 70% ownership of the property. In addition, Verena will pay 500,000 Verena common shares (subject to regulatory approval) to Teck Cominco for certain rights released on the project.

Kinross may elect to advance the exploration expenditure over a shorter time frame, but at a minimum will spend US$250,000 by the first anniversary date, a cumulative US$750,000 by the second anniversary, and cumulative US$2,000,000 by the third anniversary.

Upon signing a definite agreement, Kinross shall pay Verena US$75,000 and an additional US$75,000 after spending the first US$250,000 in exploration expenditures. Kinross shall pay Verena US$250,000 after spending a cumulative US$1,000,000 and a further US$250,000 after fulfilling the work commitment of US$2,000,000.

Kinross will be appointed operator of the exploration program and the Joint Venture. Upon fulfillment of exploration expenditures of not less that US$2,000,000, Verena and Kinross shall enter into a Joint Venture agreement.

About Verena Minerals

Toronto-based Verena Minerals Corp. is focused on the exploration and development of gold projects in Brazil. Through its wholly-owned Brazilian subsidiaries, the Company controls over 100,000 hectares of prospective exploration concessions covering major mineralized belts in Goias, Minas Gerais, Rio Grande do Norte, Para and Tocantins states. Verena currently has approximately 54 million shares outstanding, and is listed on the TSX Venture Exchange under the symbol VML.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Verena Minerals Corp.
    Stephen Shefsky
    President and CEO
    (416) 924-4337