February 5 (SeeNews) - Canada's Velocity Minerals, a gold exploration and development company focused on southeastern Bulgaria, said it will increase the size of its forthcoming non-brokered private placement to up to $5.8 million (5.3 million euro) from $3 million due to higher than expected investor demand.
The company will offer 14.5 million units, up from 7.5 million originally planned, Velocity Minerals said in a statement on Tuesday.
Each unit will 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 $0.55 for a period of 18 months from the closing of the private placement.
The proceeds of the financing are intended to fund ongoing work at the company’s gold projects in Bulgaria and for general working capital.
All newly-issued securities will be subject to a hold period of four-months and one day in Canada. The closing of the financing is subject to TSX Venture Exchange and other regulatory approval.
Velocity has a 70% joint venture interest in the Rozino gold project, in southeast Bulgaria, and has entered into option agreements with Bulgaria's Gorubso Kardzhali to earn a 70% interest in the nearby Obichnik, Makedontsi and Sedefche gold projects.
($ = 0.9083 euro)