Verena Minerals Corporation

Verena Minerals Corporation

January 12, 2006 10:44 ET

Verena Signs A Joint Venture Agreement On The Uberaba River Diamond Project

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2006) - Verena Minerals Corporation (TSX VENTURE:VML) is pleased to announce that it has signed a joint venture agreement on the Uberaba River Diamond Project, with properties located in the states of Minas Gerais and Sao Paulo, Brazil.

The objective of the joint venture contract signed between VERENA (through its 100% subsidiary Intergemas Mineracao e Industrializacao Ltda) and COSMOS DIAMOND MINERACAO LTDA (the operator), an unrelated party, is to search for primary sources of diamonds within the Verena (18,705 hectares) and Cosmos (10,829 hectares) concessions, as well as within the 15,000 square kilometre Area of Interest which covers the entire Rio Grande alluvial diamond field. The joint venture is designed to explore and develop the primary sources of diamonds in the region. Cosmos is a private mineral exploration company.

In recognition of the contribution of its alvaras (concessions) and its proprietary technical data, accumulated over a period of 8 years, Verena will have the right to a fully carried 20% interest in the entire Uberaba River Diamond Project, through exploration and production.

Verena will have the option to increase its fully carried interest from 20% to 30% at any time within one year from the commencement of the first drill hole on Uberaba River Diamond Project, by means of a one-time payment to Cosmos of twice the audited costs incurred by Cosmos on the project from the date of the signing of this Agreement to the date of Verena's election.

Cosmos, on the other hand, will have the option, at any time within two years of the commencement of drilling, to acquire Verena's initial 20% participation for US$5 million. Verena would then be left with a carried 10% interest if its one year option was exercised.

Cosmos will be responsible for:

1. Financing the entire project up to implementation of mining on its own account or with third parties;

2. Fully respecting the carried interest of Verena in any future dealings with third parties;

3. Providing a minimum annual exploration expenditure of US$500,000 over the first three years from signing of the Agreement;

4. Maintaining all present and future alvaras and requerimentos in good standing with the National Mines Department of Brazil ("DNPM");

5. Providing quarterly progress reports to Verena.

Verena Minerals Corporation 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 has approximately 59.3 million shares outstanding, and is listed on the TSX Venture Exchange under the symbol VML.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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 Corporation
    Stephen Shefsky
    President and CEO
    (416) 924-4337
    (416) 368-5146 (FAX)