Verena Minerals Corporation

Verena Minerals Corporation

November 09, 2007 17:00 ET

Verena Minerals Announces Revised Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2007) - Verena Minerals Corporation (TSX VENTURE:VML) ("Verena" or the "Corporation") announced that it has determined to cancel 4,000,000 common shares issued to Razin Overseas Limited (the "Subscriber") under the previously announced private placement closing (the "Placement") of 8,000,000 common shares at a price of $0.55 per common share for an aggregate of $4,400,000 on March 7, 2007.

On closing of the Placement, the Corporation received $2,200,000 representing 50% of the purchase price for the common shares and issued and delivered to the Subscriber 4,000,000 common shares. On or before June 9, 2007, the Corporation was to receive 25% ($1,100,000) of the purchase price and the final balance of 25% ($1,100,000) of the purchase price was to be received on or before September 9, 2007, at which time the Corporation was to deliver the remaining 4,000,000 common shares to the Subscriber.

Due to financial difficulties of the Subscriber, the Corporation agreed to an amending agreement (the "Amended Agreement") dated July 18, 2007 whereby the Corporation agreed to combine the amounts payable on June 9, 2007 and September 9, 2007 to permit the Subscriber to make the $2,200,000 payment on or before October 15, 2007 (as described in a press release issued on July 18, 2007). All other terms of the original subscription agreement for the Placement remained in full force and effect.

The Corporation has held extensive meetings with the Subscriber in order to cause payment to be made according to the Amended Agreement, but has been unsuccessful. The Corporation does not feel a further extension of the date for final payment will result in the payment being made due to continuing financial difficulties of the Subscriber. As a result, the Corporation has determined to cancel the remaining 4,000,000 common shares for return to treasury.

Verena has sufficient funds to complete the current drill program at Volta Grande through year-end and to advance efforts to acquire new exploration projects within Brazil. To that end, drilling is continuing at the South Block to follow up previously reported encouraging mineralization encountered at Pequi, including 27 metres grading 1.73 g/t and 5m @ 8.73 g/t (see Press Release dated Oct 9, 2007).

About Verena Minerals Corporation

Verena Minerals Corporation is exploring for gold along the major mineralized belts of northern Brazil. Verena is focused on expanding and advancing its Volta Grande Gold Project, where a 37,000 metre core drilling program is underway. Verena has a strategic alliance with Kinross Gold Corporation, which owns approximately 7.3 percent of Verena and holds options on the Monte do Carmo and Patrocinio gold projects. Verena also holds a portfolio of Brazilian diamond and gem properties. Verena trades on the TSX Venture Exchange under the symbol VML, and has approximately 97.5 million common shares issued and outstanding, prior to cancellation of the 4,000,000 shares described herein.

Common Shares Outstanding: 97,840,180

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 & CEO
    (416) 368-2998