January 24 (SeeNews) - Canada's Velocity Minerals, a gold exploration and development company focused on southeast Bulgaria, said that it will seek to raise up to $3 million (2.7 million euro) via a non-brokered private placement of up to 7,500,000 units of the company at a price of $0.40 per unit.
The units consist of one common Velocity share and one-half of one common share purchase warrant, with each whole warrant entitling its holder to purchase one share at a price of $0.55 for a period of 18 months from the closing of the financing, Velocity Minerals said in a statement on Thursday.
The proceeds of the financing are intended to fund ongoing work at the company’s gold projects in Bulgaria and for general working capital.
Velocity Minerals may decide to increase the size of the financing depending on investor demand.
All newly-issued securities will be subject to a hold period of four-months and one day in Canada. The closing of the financing is subject to TSX Venture Exchange and other regulatory approval.
Velocity has a 70% joint venture interest in the Rozino gold project, in southeast Bulgaria, and has entered into option agreements with Bulgaria's Gorubso Kardzhali to earn a 70% interest in the nearby Obichnik, Makedontsi and Sedefche gold projects.
($ = 0.9054 euro)