Velocity Agrees to Sell All Bulgarian Assets for USD $59.0 Million
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NR-24-09 October 1, 2024
Velocity Agrees to Sell All Bulgarian Assets for USD $59.0 Million
Vancouver, British Columbia – Velocity Minerals Ltd. (TSX.V: VLC , OTCQB: VLCJF ) ( "Velocity" or the
"Company") is please d to announce that it has entered into a binding letter agreement (the "Letter
Agreement") with Türkerler İnşaat Turizm Madencilik Enerji Üretim Ticaret ve Sanayi A.Ş. ("Türkerler"), a
diversified company based in Ankara, Turkey, whereby Türkerler has agreed to purchase 100% of the
Rozino gold project, together with certain licences, licence applications and associated tenures and rights
(the "Rozino Project ") and the interest of Velocity in certain other Bulgarian mineral property assets,
licences, licence applications and associated tenures and rights (collectively, the "Non-Rozino Assets";
together with the Rozino Project, the "Subject Assets ") in consideration for USD $59.0 million cash
(the "Transaction").
"We are delighted to have secured a US D $59 million deal for our Bulgarian assets so soon after
announcing our intention to do so. We look forward to closing this Transaction in due course ," stated
Keith Henderson, the Company 's President & CEO. "Türkerler is a diversified company with total
investment of more than US D $6 billion in active projects , with a focus on renewable energy projects.
They are very well positioned to take assets like the Rozino Project to the next stages of development ,
with the support of Velocity's Bulgarian team." Mr. Henderson continued, "This investment in the Rozino
Project will be particularly welcome news for the residents of the Ivaylovgrad region as resource-sector
investments tend to bring far -reaching economic benefits for local residents and local businesses. The
neighbouring Ada Tepe mine is expected to close in 2026, so development of the Rozino Project mine will
be necessary to secure employment in this part of Bulgaria. "
"We have added value to the Rozino Project with focused exploration and mineral resource expansion
ultimately leading to a positive Prefeasibility Study. Projects like this bring added value to society, bringing
employment, training, and programs to build local community capacity. We are especially proud that
exploration at the Rozino Project was completed by a Bulgarian team of geologists and scientists who
defined the project as economically viable ," Mr. Henderson noted, "Moving forward, Velocity is looking
at potential acquisition opportunities throughout Europe to identify projects where we can again add
significant value to underappreciated assets. We look forward to updating shareholders in due course."
Commercial Terms
Under the terms of the Letter Agreement and subject to acceptance by the TSX Venture Exchange
(the "TSXV"), it is currently expected that the Transaction will be effected by way of a share purchase and
sale transaction, pursuant to which Türkerler will purchase all of the issued and outstanding shares of
certain Bulgarian subsidiaries of Velocity. The purchase price for the Subject Assets will be
USD $59.0 million (the "Purchase Price"), payable in two tranches, as follows: (i) an initial non-refundable
payment in the amount of USD $15.0 million payable at the closing of the Transaction ( "Closing"); and
(ii) an additional payment in the amount of USD $44.0 million (the "Second Tranche Payment ") on or
before the 18 month anniversary of the date of Closing, provided that if the Second Tranche Payment is
paid by Türkerler on or before the 12 month anniversary of the date of Closing, then the amount of the
Second Tranche Payment will be reduced by USD $1.5 million to USD $42.5 million. Gorubso-Kardzhali
NR-24-09 Continued October 1, 2024
2
AD, which holds a 30% interest in the Rozino Project, will be entitled to 30% of the Purchase Price
attributed to the Rozino Project . USD $55.0 million of the Purchase Price is attributable to the Rozino
Project.
Closing is currently scheduled for on or before January 31, 2025 , and will be subject to customary
conditions precedent, including, without limitation, satisfactory completion of due diligence by Türkerler,
receipt of all necessary shareholder, board and regulatory (including TSXV) consents and approvals. The
Transaction requires the favourable vote of 66 2/3% of the votes cast by Velocity shareholders and
Velocity expects to set a shareholder meeting date to approve the Transaction in December 2024.
Türkerler and Velocity will each, subject to certain terms and conditions in the Letter Agreement, be
responsible for payment of a break or non-completion fee to the other party equal to 5% of the Purchase
Price in certain circumstances if the Transaction does not proceed. Türkerler is an arm's length party to
the Company, and finder's fees in the amount of 4% will be payable in connection with the Transaction.
About Velocity
Velocity is a precious metals and copper explorer focused on Eastern Europe. In Bulgaria, Velocity has a
70% interest in the Tintyava property, which includes the prefeasibility-stage Rozino deposit. Velocity
also has a 70% interest in the Momchil property (which includes the Obichnik project), a 70% interest in
the Nadezhda property (which includes the Makedontsi project), a 70% interest in the Dangovo property
(which is contiguous with the Makedontsi project), and a 100% interest in the Iglika copper -gold
exploration property.
About Türkerler
Türkerler was founded more than 50 years ago in Ankara, Türkiye, and has grown to become a diversified
group of companies with over 24,000 staff, and which is active in real estate development, renewable
energy (wind, solar, geothermal), electrical generation & distribution, public -private partnerships, the
textile sector, as well as mining. Türkerler's experience includes major construction projects , such as
hydro-electric dams, tunnels, highways, subways and hospitals, which experience will be critical in its
ongoing expansion into the mining sector. As at the end of the last financial year, T ürkerler has total
investments of $6 billion dollars in active projects.
On Behalf of the Board of Directors
"Keith Henderson"
President & CEO
For further information, please contact:
Keith Henderson
Phone: +1-604-484-1233
E-mail: [email protected]
Web: www.velocityminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward -looking statements and forward -looking information (collectively, "forward-
looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other
than statements of historical fact, included herein including, without limitation, statements regarding the
completion of the Transaction , the completion of the conditions precedent to the Transaction , the holding of a
NR-24-09 Continued October 1, 2024
3
shareholder meeting to approve the Transaction , and the anticipated business plans and timing of future activities
of the Company, are forward -looking statements. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward-
looking information can be identified by words such as "pro forma ", "plans", "expects", "may", "will", "should",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such
words including negative variations thereof, and phrases that refer to certain actions, events or results that may,
could, would, might or will occur or be taken or achieved. In making the forward -looking statements in this news
release, the Company has applied several material assumptions, including without limitation, that market
fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits,
licenses and regulatory approvals in connection with the Transaction in a timely manner, the availability of financing
on suitable terms for the continued operation of the Company's business, and the Company’s ability to comply with
environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from any future results,
performance or achievements expressed or implied by the forward-looking information. Such risks and other factors
include, among others, operating and technical difficulties in connection with mineral exploration and development
and mine development activities at the Company's properties , estimation or realization of mineral reserves and
mineral resources, requirements for additional capital, future prices of precious metals and copper, changes in
general economic conditions, changes in the financial markets and in the demand and market price for commodities,
possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as
anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company
to obtain any necessary permits, consents or authorizations required, including TSX Venture Exchange acceptance
of the Transaction , financing or other planned activities, changes in laws, regulations and policies affecting mining
operations, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and
possible outcome of pending litigation, environmental issues and liabilities, risks relating to epidemics or pandemics
such as COVID -19, including the impact of COVID -19 on the Company's business, risks related to joint venture
operations, and risks related to the integration of acquisitions, as we ll as those factors discussed under the heading
"Risk Factors" in the Company's latest Management Discussion and Analysis and other filings of the Company with
the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR +
website at www.sedarplus.ca.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by
law, the Company undertakes no obligation to update any of the forward -looking information in this news release
or incorporated by reference herein.