DIAMOND PAGE — De Beers signs deal with Verena

An agreement between Verena Minerals (VMCO-C) and a unit of De Beers Consolidated Mines (DBRS-Q) sets the stage for ongoing exploration of Verena’s Porto Nacional concession in Brazil’s northern state of Tocantins.

Verena holds a large land package in the South American nation, where it has been exploring for gold and diamonds and other gemstones in Tocantins, Goias and Minas Gerais states.

De Beers’ local subsidiary was granted the right to explore for diamonds on the 416,000-ha concession, and will have access to all data from recently completed airborne geophysical surveys.

The diamond company has an option to earn a 51% interest in the property by spending US$1 million on exploration over the next 18 months. The option covers only diamond projects; any other minerals found would be for Verena’s benefit.

Verena says the deal gives it value-added benefits because the concession covers an extensive gold belt along the Trans-Brazilian lineament, which is known also to host kimberlites. Verena was not planning to explore the ground for diamonds.