March 15 (SeeNews) - Canada's Velocity Minerals said that it has closed a 9 million Canadian dollars ($6.8 million/6.0 million euro) strategic investment with Atlantic Gold Corporation and its unit 1193490 B.C. Ltd, with the proceeds to be used to fund the advancement of the Rozino gold project in Bulgaria.
The strategic investment comprised a private placement of 18,600,000 units for total gross proceeds of approximately 3.9 million Canadian dollars and a convertible debenture in the aggregate principal amount of approximately 5.1 million Canadian dollars, the mineral exploration and development company said in a statement on Thursday.
"Since announcing the strategic investment, existing shareholders and new investors alike have expressed support for the transaction. With Atlantic Gold’s recent operational achievements in Nova Scotia, Velocity will benefit from their mine building expertise and shared corporate strategy of implementing a hub and spoke model of development," Keith Henderson, president and CEO of Velocity, said.
The proceeds will fund activities at the Rozino site, in southeastern Bulgaria, including resource expansion and definition drilling, engineering studies, environmental monitoring and assessment, and others.
In addition, Velocity will proceed to option and explore additional satellite deposits in the region, the company said.
This year's drill programme at Rozino, which is now fully permitted, envisages a total of 12,000m to 14,000m of drilling, with an additional 1,000m of drilling planned outside Rozino.
The drill programme at Rozino is intended to include exploration drilling and infill drilling aimed at increasing the existing mineral resource base and improving resource definition. The programme is also expected to support additional metallurgical and comminution studies, as well as hydrogeological and geotechnical work.
Velocity also expects to initiate exploration activities within the larger exploration and mining alliance area held with Bulgarian operating partner Gorubso-Kardzhali, it said.
Earlier this month, Velocity announced that it has completed the acquisition of 70% interest in Bulgaria's Tintyava Property, which holds the Rozino gold deposit, from Gorubso-Kardzhali, through delivery of a PEA.
(1 euro = 1.51 Canadian dollars)