Velocity Exercises Option to Acquire 70% Interest at the Obichnik Gold Project, Bulgaria
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NR-21-12 June 23, 2021
Velocity Exercises Option to Acquire 70% Interest
at the Obichnik Gold Project, Bulgaria
Vancouver, British Columbia – Velocity Minerals Ltd . ( TSXV: VLC) (“ Velocity” or the “ Company”)
announces that it has delivered notice of option exercise (the “Exercise Notice”) to Gorubso-Kardzhali AD
(“Gorubso”) for the Momchil property (the “ Property”), which includes the Obichnik gold project
(“Obichnik” or the “ Project”). To fulfill the terms of the opti on agreement with Gorubso, Velocity was
required to deliver a Mineral Resource estimate prepared in accordance with National Instrument 43-101
(“NI 43-101”) and an Environment Impact Assessment prepared in accordance with Chapter Six of the
Bulgarian Environmental Protection Act.
Following delivery of the Exercise Notice, Velocity is deemed to have earned a 70% interest in the Property
and to be in Joint Venture with Gorubso for the further development of the Property.
Obichnik Gold Deposit
Gold mineralization at Obichnik was the subject of an initial mineral resource estimate of 4.4 Mt grading
1.1 g/t gold for 156,000 ounces, at 0.3 g/t gold cut-off grade (see previous news release NR-21-04, March
16, 2021). Mineralization is near surface, with 80% of estimated resources located within 120m. The
mineralized system remains open for expansion.
A NI 43 -101 Technical Report was filed on SEDAR entitled “ NI 43-101 Technical Report Exploration and
Mineral Resource Estimation for the Obichnik Prop erty, Republic of Bulgaria ,” dated March 20, 2021
(effective date February 11, 2021). The Technical Report was written by Jonathon Abbott an independent
Qualified Person as defined by National Instrument 43 -101 Standards of Disclosure. The Report is
available on SEDAR under the Company’s profile and on the Company’s web site.
Corporate Update
All resolutions set out in the Company’s notice of meeting and information circular were passed by
shareholders at the annual general meeting held on June 22, 2021. The following incumbent directors
were re-elected: Keith Henderson, Daniel Marinov, Mark Cruise, Michael Hoffman and Steven Dean. The
shareholders re-appointed Davidson & Company LLP, Chartered Professional Accountants as auditors of
the Company for the ensuing year and approved the Company’s 10% rolling stock option plan. The stock
option plan is subject to annual TSX Venture Exchange acceptance.
Subsequent to the annual general meeting, the board of directors appointed the following officers: Keith
Henderson as President & C hief Executive Officer , Darren Morgans as Chief Financial Officer, Dan iel
Marinov as Vice President, Operations, Stuart Mills as Vice President, Exploration, Joyce Musial as Vice
President, Corporate Communications, and Arie Page as Corporate Secretary.
Quality Assurance / Quality Control
The work program at Obichnik was designed and is supervised by Stuart A. Mills, CGeol, the Company's
Vice-President Exploration, who is responsible for all aspects of the work, including the quality
control/quality assurance program. On-site personnel at the project rigorously collect and track samples
NR-21-12 Continued June 23, 2021
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which are then security sealed and shipped to ALS Global laboratory in Romania. Samples were prepared
and analyzed by fire assay using a 30-gram charge in compliance with industry standards. Field duplicate
samples, blanks and independent controlled reference material (standards) are included in every batch.
An additional sample taken from each pulverized sample is shipped to ALS Global laboratory in Ireland for
aqua regia digest and silver plus multi -element analysis by Inductively C oupled Mass Spectrometry
(ICPMS).
Qualified Persons
The technical content of this release has been approved for disclosure by Stuart A. Mills, BSc, MSc, CGeol,
a Qualified Person as defined by NI 43-101 and the Company’s Vice President Exploration. Mr. Mills is not
independent of the Company.
About Velocity Minerals Ltd.
Velocity is a gold exploration and development company focused on southeastern Bulgaria. Velocity’s
strategy is to develop a low cost centralized “Hub and Spoke” operation whereby multiple projects within
this emerging gold district produce gold concentra tes for trucking to a central processing plant for
production of doré. The Company envisions staged open pit mining of satellite deposits and processing
in a currently operating processing plant. Velocity has a 70% interest in the Tintyava pro perty, which
includes the Rozino gold project, a 70% interest in the Momchil property, which includes the Obichnik
gold project, and a 100% interest in the Iglika property. The Company has entered into an option
agreement to earn a 70% interest in the Makedontsi gold project. Velocity’s management and board
includes mining industry professionals with combined experience spanning Europe, Asia, and the
Americas as employees of major mining companies as well as founders and senior executives of junior to
mid-tier public companies. The team's experience includes all aspects of mineral exploration, resource
definition, feasibility, finance, mine construction and mine operation as well as a track record in managing
publicly listed companies.
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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward -looking statements” under applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with respect to: future exploration and
testing carried out on the Project; use of funds; and the future business and operations of the Company. Often, but
not always, forward looking statements can be identified by words such as “pro forma”, “plans”, “expects”, “may”,
“should”, “budget”, “scheduled”, “estimates”, “forecas ts”, “intends”, “anticipates”, “believes”, “potential” or
NR-21-12 Continued June 23, 2021
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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. For ward looking information involves
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 for
the Project, including the geo logical mapping, prospecting and sampling programs for the Project, actual results of
exploration activities, estimation or realization of mineral reserves and mineral resources, the timing and amount of
estimated future production, costs of production, ca pital expenditures, the costs and timing of the development of
new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital
to fund the Company's business plan, future prices of precious metals, ch anges 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, ac cidents,
labour disputes and other risks of the mining industry, delays in obtaining governmental and regulatory approvals
(including of the TSX Venture Exchange), permits or financing or in the completion of development or construction
activities, risks r elating to epidemics or pandemics such as COVID –19, including the impact of COVID –19 on the
Company's business, financial condition and results of operations, changes in laws, regulations and policies affecting
mining operations, hedging practices, currenc y fluctuations, title disputes or claims limitations on insurance
coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related
to joint venture operations, and risks related to the integration of a cquisitions, as well as those factors discussed
under the heading. "Risk Factors" in the Company's annual management's 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.sedar.com.
Readers are cautioned not to place undue reliance on forward looking information. The Company undertakes no
obligation to update any of the forward -looking information in this news release or inco rporated by reference
herein, except as otherwise required by law.