June 25 (SeeNews) - Canadian mineral exploration company Velocity Minerals said it has informed its partner - Bulgaria's Gorubso-Kardzhali, about its decision to exercise its option to boost to 70% its stake in the 88-hectare Momchil property in southeast Bulgaria, which includes the Obichnik gold project.
Following delivery of the exercise notice, the Canadian firm is deemed to have earned the majority interest and to be in joint venture with Gorubso for the further development of the property, a press release said on Thursday.
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Financial details were not provided.
Velocity is a Canadian gold exploration and development company active in building a multi-asset production profile in an emerging gold district in southeast Bulgaria. So far its focus has been on its 70%-owned Tintyava joint venture, which includes the advanced Rozino gold deposit, as well as a number of target areas.
Gorubso-Kardzhali is a minority shareholder in Velocity. At the end of 2020, the Bulgarian firm invested $250,000 (209,297euro) in Velocity, along with peer Dundee Precious Metals (DPM) which poured in $6.7 million. DPM acquired 13,394,000 common shares in Velocity, or 9.99% interest, through the transaction, while Gorubso-Kardzhali acquired 500,000 common shares.
Velocity Minerals completed the acquisition of the 70% interest in Tintyava from Gorubso-Kardzhali in 2019. The Canadian firm also had option agreements with Gorubso-Kardzhali to earn 70% stakes in the Momchil property, which aprt from the Obichnik gold project, also includes the 194-hectare Nadezhda property, which holds the Makendontsi gold project.
($ = 0.8372 euro)