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Velocity wraps up buy of 70% of Bulgarian gold project

Author Mario Tanev
Velocity wraps up buy of 70% of Bulgarian gold project Gold Ore; By James St. John, via Wikimedia Commons

SOFIA (Bulgaria), March 1 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Friday that it has completed the acquisition of 70% interest in Bulgaria's Tintyava Property, which holds the Rozino gold deposit, from Bulgaria's Gorubso-Kardzhali.

The Canadian company also entered into a shareholder’s agreement with Gorubso-Kardzhali, which covers the operation and management of the corporate joint venture company that holds the Prospecting and Exploration Licence for the Tintyava property - Tintyava Exploration, Velocity Minerals said in a statement.

Velocity Minerals entered into the agreement with Gorubso-Kardzhali through its wholly-owned unit Kibela Minerals.

The 2019 drill programme is now fully permitted and drilling is expected to begin in March, according to the statement.

The programme envisages completing 12,000m to 14,000m of drilling at Rozino, which will include exploration drilling to expand the resource base as well as resource definition and infill drilling.

Next steps include the advancement of Rozino towards feasibility utilizing proceeds from the recently announced strategic investment by Atlantic Gold, Keith Henderson, Velocity’s president and CEO, was quoted saying.

Last month, Velocity entered into an investment agreement with Atlantic Gold Corporation for a 9 million Canadian dollars ($6.8 million/6 million euro) strategic investment, comprised of a $3,906,000 equity investment for 18,600,000 units of Velocity and a 5,094,000 Canadian dollars principal amount of secured convertible debentures of Velocity.

Upon closing of the strategic investment, Atlantic Gold will own approximately 19.9% of the outstanding common shares of Velocity on a non-diluted basis and approximately 39.2% on a partially-diluted basis, Velocity said.

(1 Canadian dollar = 0.6642 euro)