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Can anybody help me with this, any help is appreciated.

I want to create a news blog where any anonymous user can put the news post, but for posting news article, the user must provide their valid email, the verification mail should be sent to that user. News should only be posted after only the email is verified.

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This has been discussed at Use email to validate post, not unlike craigslist.

A module that is still in alpha is also available:

https://drupal.org/project/anonymous_publishing

The module is not widely used, thus not extensively tested. It might be safer to write your own rules as discussed in the first link.

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