February 25 (SeeNews) - Canadian gold exploration company Velocity Minerals said on Thursday that it has acquired 100% interest in the Iglika copper-gold project and the associated exploration licence under a previously-agreed option deal.
Velocity has exercised the right to acquire all of the shares of Bulgaria's Balkan Minerals Development, which holds the exploration licence for the project area, with the vendors retaining a 2% net smelter returns royalty capped at $5 million (4.1 million euro), Velocity said in a statement.
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At any time, 1.5% of the royalty can be purchased for $1.5 million.
Velocity is currently completing a programme of comprehensive geochemical sampling, geophysical surveying, and geological mapping, which will be followed by drilling at priority targets in the second quarter of the year.
Velocity is focusing on near surface gold potential at the Iglika project, which has potential for both epithermal gold and porphyry copper-gold deposits.
The acquisition of Balkan Minerals Development has not yet been entered into the commercial register, a SeeNews check showed. Balkan Minerals Development is 100% owned by local company BMD 1, which in turn is 55%-owned by Czech investor Pavel Hanzl and 45%-owned by Bulgarian national Venelin Zhelev.
($ = 0.8185 euro)