Dundee Precious Metals Announces Investment in Velocity Minerals Ltd.
Dundee Precious Metals Announces Investment in Velocity Minerals Ltd.
Toronto, November 16, 2020 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”)
today announced that it has entered into an investment agreement (the “Agreement”) with Velocity
Minerals Ltd. (TSXV: VLC) (“Velocity”) to invest up to C$7 million in Velocity on a private placement
basis. DPM is expected to purch ase up to 14 million common shares of Velocity at a price of C$0.50
per share. Upon closing the transaction, DPM is expected to own approximately 9.9 9% of Velocity’s
issued and outstanding common shares on a non-diluted basis.
Velocity is a gold exploratio n and development company focused on southeastern Bulgaria. Velocity
has a 70% interest in the Tintyava prospecting licence, which includes the Rozino gold project
(“Rozino”), located approximately 40 kilometres by road from DPM’s Ada Tepe mine . Velocity’s 70%
interest in Rozino is held through a joint venture arrangement with a local third party. On October 15,
2020, Velocity filed a pre -feasibility technical report on Rozino which contained a probable mineral
reserve estimate (effective as at Au gust 30, 2020) at a 0.5 g/t gold cut -off grade of 11.8 Mt at 1.22 g/t
gold for 465,000 ounces. 1 Velocity also has option agreements to earn a 70% interest in the Obichnik
and Makedontsi gold projects; and an option agreement to earn a 100% interest in the Iglika project.
“We are pleased to be investing in further gold exploration in southeastern Bulgaria through our equity
financing in Velocity,” said David Rae, President and CEO of Dundee Precious Metals. “Given our strong
presence and capabilities in the region, we believe that we are uniquely positioned to support Velocity
as a strategic shareholder.”
The Agreement contains certain rights and restrictions customary for these types of transactions.
Subject to approval of the TSX Venture Exchange and other closing conditions, the transaction is
expected to close on or about November 24, 2020. All securities issued in connection with the
transaction will be subject to a hold period of four months and one day in Canada.
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the
acquisition of mineral properties, exploration, development, mining and processing of precious metals.
The Company's operating assets include the Chelopech operatio n, which produces a gold -copper
concentrate containing gold, copper and silver and a pyrite concentrate containing gold, located east of
Sofia, Bulgaria; the Ada Tepe operation, which produces a gold concentrate containing gold and silver,
located in southern Bulgaria; and the Tsumeb smelter, a complex copper concentrate processing facility
located in Namibia. DPM also holds interests in a number of developing gold and exploration properties
located in Canada, Serbia and Ecuador, including its 9.4% interest in Sabina Gold & Silver Corp. and
its 19.4% interest in INV Metals Inc.
1 Source: Rozino Gold Project Pre-Feasibility Technical Report, dated October 14, 2020, available on Velocity’s profile at
www.sedar.com, which includes additional information, including assumptions and parameters relating to the pre-feasibility
study and the mineral reserve estimate.
For further information please contact:
David Rae
President and Chief Executive Officer
Tel: (416) 365-5092
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
Cautionary Note Regarding Forward-Looking Statements
This news release contains “f orward looking statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number of risks and uncertainties. Forward Looking
Statements are statements that are not historical facts and are generally, but not al ways, identified by
the use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and
phrases or that state th at certain actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward
Looking Statements in this news release relate to, among other things : the closing of the transaction,
the expected ownership level of the Company in Velocity following the closing of the transaction, the
future support of Velocity and Velocity’s mineral reserve estimate. Forward Looking Statements are
based on certain key assumptions and the opinions and estimates of management, as of the date such
statements are made, and they involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to b e materially different
from any other future results, performance or achievements expressed or implied by the Forward
Looking Statements. Such risks include, without limitation, there being no assurance that the transaction
will be completed, uncertainties inherent to mineral reserve estimates, risks and uncertainties with
respect to conducting business in Bulgaria and other risks identified by the Company in its continuous
disclosure documents filed at www.sedar.com. Although the Company has attempted to i dentify
important factors that could cause actual actions, events or results to differ materially from those
described in Forward Looking Statements, there may be other factors that cause actions, events or
results not to be anticipated, estimated or inten ded. There can be no assurance that Forward Looking
Statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. The Company’s Forward Looking Statements reflect current
expectations regarding future events and speak only as of the date hereof. Unless required by securities
laws, the Company undertakes no obligation to update Forward Looking Statements if circumstances
or management’s estimates or opinions should change. Accordingly, readers are cautioned not to place
undue reliance on Forward Looking Statements.