Velocity Receives TSX Venture Approval for Amended Zlatusha Copper-Gold Option Agreement Issues Shares to Vendor
Velocity Receives TSX Venture Approval for
Amended Zlatusha Copper-Gold Option
Agreement
Issues Shares to Vendor
Vancouver, British Columbia--(Newsfile Corp. - April 20, 2023) - Velocity Minerals Ltd. (TSXV: VLC)
(OTCQB: VLCJF) ("
Velocity
" or the "
Company
") announces that it has received TSX Venture
Exchange ("
TSXV
") approval for the previously announced binding letter agreement (as amended, the
"
Letter Agreement
") with Zelenrok EOOD ("
Zelenrok
"), a wholly-owned subsidiary of Raiden
Resources Limited (ASX: RDN) (collectively with Zelenrok, "
Raiden
") (see news release dated January
24, 2023).
Pursuant to the Letter Agreement, Velocity has been granted an exclusive option to acquire
up to a 75% interest (the "
Option
") in and to the prospecting and exploration license covering the 195
km
2
Zlatusha gold-copper property ("
Zlatusha
" or the "
Property
"), located in Bulgaria.
The Option
consists of a first option to acquire up to a 51% interest (the "
First Option
") and a second option (the
"
Second Option
") to acquire an additional 24% (aggregate 75%) interest in and to the Property.
Letter Agreement
The Letter Agreement has been amended (i) to add a price floor for the Velocity shares issuable under
the Option (each a "
Velocity Share
"), such that the deemed issuance price per Velocity Share will be
equal to the greater of $0.1625 per share and the 20 day volume weighted average price of the Velocity
Shares on the TSXV ending on the trading day immediately prior to the issuance of the Velocity Shares;
and (ii) to change the initial consideration consisting of a $100,000 cash payment and $100,000
variable cash payment due within 10 business days of the TSXV approval to the issuance to Raiden to
$220,000 in Velocity Shares, which have now been issued.
The amendment to the Letter Agreement
also provides that, during the term of the First Option, Velocity can carry a drilling shortfall into the
immediately following year, provided that Velocity cannot terminate the First Option prior to having
completed 3,000m of drilling on or prior to September 23, 2024.
Zlatusha Property and Next Steps
The Zlatusha gold-copper property is located within a prolific mineral belt stretching from Serbia through
Bulgaria (
Figure 1
).
Although certain prospects within the property have historically seen 52 drill holes
(~10,000m), the 195 km
2
property has never seen systematic modern exploration.
The property is highly
prospective for epithermal gold, porphyry copper-gold, and skarn deposits and a total of seven known
mineral occurrences have already been identified.
Immediate exploration plans include a property-wide airborne magnetic geophysical survey,
geochemical sampling, including extensive soil sampling surveys, as well as detailed mapping and
prospecting.
Figure 1.
Map showing the location of the Property within the prospective Tethyan copper-gold
mineral belt transecting Serbia and Bulgaria and highlighting the location of operating mines,
formerly operating mines, and mines under development.
Readers are cautioned that the mines and
deposits discussed above are adjacent properties and that Velocity has no interest in or right to
acquire any interest in the deposit, and that mineral deposits on adjacent or similar properties, and
any production therefore or economics with respect thereto, are not in any way indicative of mineral
deposits on Velocity's properties or the potential production from, or cost or economics of, any future
mining of any of Velocity's mineral properties.
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Qualified Person
The technical content of this release has been approved for disclosure by Daniel Marinov, RPGeo, a
Qualified Person as defined by NI 43-101 and the Company's Vice President Operations.
Mr. Marinov is
not independent of the Company as he is a director, officer and shareholder, and holds incentive stock
options.
About Velocity Minerals Ltd.
Velocity is a precious metals and copper explorer focused in 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 deposit), a 70% interest in
the Nadezhda property (which includes the Makedontsi deposit), a 70% interest in the Dangovo property
(which is contiguous with the Makedontsi deposit), and a 100% interest in the Iglika property.
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.
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:
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 exercise of the First Option or the Second Option by Velocity and the
deliverables required for same, 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 it will obtain TSX Venture Exchange
acceptance, if applicable, 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
future development of the Property in a timely manner, the availability of financing on suitable terms for
the development, construction and continued operation of the Property, 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 Property, the fact that the
Company's interest in the Property is an option only and there is no guarantee that such interest, if
earned, will be certain, 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
TSXV acceptance, 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 well 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.sedar.com
.
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.
- 30 -
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