Verena Minerals Corporation
TSX VENTURE : VML

Verena Minerals Corporation

March 07, 2008 09:39 ET

Verena Minerals Enters Agreement to Sell the Bonfim Tungsten Project

TORONTO, ONTARIO--(Marketwire - March 7, 2008) - Verena Minerals Corporation (TSX VENTURE:VML) ("Verena" or the "Company") is pleased to announce that it has signed a binding Letter of Intent ("LOI") dated March 3, 2008 with Mineracao Santo Expedito Ltda. (the "Purchaser") of Brazil, pursuant to which Verena has agreed to sell its interest in the Bonfim Project (the "Project"), a past producing tungsten mine in Brazil. Under the terms of the LOI, Verena will receive a payment of US$800,000 for the sale of its interest in the Project to the Purchaser. The transaction is subject to satisfactory due diligence by the Purchaser over a period of up to 45 days, completing a definitive agreement, and Board and regulatory approvals as required.

"The sale of Bonfim is consistent with our strategic plan to focus our resources on the exploration and development of Volta Grande" said Ron Stewart, President and CEO of Verena. "While Bonfim is an interesting prospect, we did not see it as a potential value driver for our shareholders in the near term."

Verena's 2008 operating plan is to complete a preliminary economic evaluation of the Volta Grande project as well as initiate an in-fill diamond drill program to increase the confidence level of the model. The new resource (see Press Release dated February 28, 2008) is comprised of 400,000 indicated ounces of gold (33.5 million tonnes at 0.92 grams per tonne (g/t)) and 1,629,000 inferred ounces of gold (54.5 million tonnes at 0.93 g/t) using a 0.5 g/t cut-off.

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