Verena Minerals Corporation
TSX VENTURE : VML

Verena Minerals Corporation

March 20, 2008 09:40 ET

Verena Minerals Announces Closing of Private Placement With Sprott Asset Management

TORONTO, ONTARIO--(Marketwire - March 20, 2008) - Verena Minerals Corporation ("Verena" or the "Company")(TSX VENTURE:VML) is pleased to announce that it has closed the private placement (the "Placement") with Sprott Asset Management for aggregate gross proceeds of $1,000,000.

The Placement consists of the issuance of 3,333,333 units (the "Units") at a price of $0.30 per Unit. Each Unit consists of one common share of Verena and one-half of one common share purchase warrant ("Warrant") with each whole Warrant being exercisable to acquire one further common share of Verena at a price of $0.45 for a period of 18 months from closing.

In connection with the Placement, the Company agreed to pay D & D Securities Company (the "Agent") a cash fee of 6% of the gross proceeds raised through the Agent under the Placement and also to issue broker options to acquire up to that number of Units as is equal to 6% of the total number of Units issued through the Agent, exercisable at $0.30 each for a period of 18 months from closing (the "Compensation Warrants").

The proceeds from the Placement will be used to partially fund a planned 10,000 metre in-fill drill program on the Volta Grande property. The Company recently announced an updated resource estimate on Volta Grande (see Press Release dated February 28, 2008), including 400,000 ounces of indicated resources (33.5 million tones at 0.92 grams per tonne (g/t)) and 1,629,000 inferred ounces of gold (54.5 million tones at 0.93 g/t) using a 0.5 g/t cut-off.

The securities underlying the Units, including the common shares and Warrants issued on closing and the common shares issuable upon due exercise of the Warrants and Compensation Warrants, will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Placement is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

About Verena

Verena Minerals Corporation is a Canadian based mineral exploration company with an outstanding portfolio of properties including gold, diamonds and gemstones in Brazil. Verena's prime focus is on advancing and expanding its 100% owned Volta Grande Project, located in Para State. Verena has a strategic alliance with Kinross Gold Corporation, which holds 7.5% of the common shares of Verena and is earning an interest into the Monte do Carmo and Patrocinio gold projects. Verena also operates the Lavrinha gold project and controls a portfolio of diamond and gem properties. Verena trades on the TSX Venture Exchange and has approximately 93.5 million common shares issued and outstanding.

Cautionary Statement on Forward Looking Information

This press release may include forward looking statements within the meaning of securities laws. Forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from what is currently expected. Accordingly, readers should not place undue reliance on forward looking statements. For a more detailed discussion of such risks and other factors, refer to Verena's filings with the Canadian securities regulators available on www.sedar.com or the Company's website at www.verena.com.

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

Contact Information

  • Verena Minerals Corporation
    Ron W. Stewart
    President and CEO
    (416) 368-2998
    Website: www.verena.com