Peter Epstein Blog | Velocity Minerals Scores Key Strategic Partner | Talkmarkets
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Velocity Minerals Scores Key Strategic Partner

Date: Friday, January 18, 2019 6:19 PM EST

{Please see disclosures at bottom of page}

Velocity Minerals Ltd. (TSX-V: VLC) / (OTCQB: VLCJF), the Bulgarian gold exploration & development company, with a strong PEA on its Rozino project, and 6 additional near-surface gold prospects, announced a key strategic investment by Atlantic Gold Corp. (TSX-V: AGB) / (OTCQB: SPVEF).

A Vote of Confidence in Velocity Minerals

Atlantic Gold is a C$400 M company with proven mine building capabilities.  It produced 90,531 ounces of gold in 2018 at a very low all-in sustainable cost of US$521-US$566/oz.  The mine was built on time and on budget and production metrics are exceeding Feasibility levels.  The mine is being expanded to 200,000 ounces/yr.

This is a significant de-risking event for Velocity as it will receive a C$3.9 million equity investment at a premium to its market price, plus a C$5.1 million 5-year secured 8.5% convertible bond investment with a conversion price of C$0.25/share (a 35% premium).  The convertible bond has no strings attached (no warrants or other equity kickers). In total Velocity will receive C$9 million from Atlantic Gold.

Velocity CEO Keith Henderson stated, “We are delighted to welcome Atlantic Gold as a strategic investor in the company. Atlantic’s development expertise in Nova Scotia complements our exploration success in Bulgaria. Our corporate strategies are aligned, with Velocity’s development objectives mirroring Atlantic’s successful hub-and-spoke approach of satellite deposits feeding a centralized processing plant. The proceeds from the financing will allow for the progression of our PEA-stage Rozino gold project toward feasibility and for exploration and resource definition of several additional projects. We believe that 2019 will be a transformative year for Velocity.

$9 M in Proceeds Will Go a Long Way…. 

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