Business
Velocity Announces Closing of $8.9 Million Strategic Investment and Private Placement
Vancouver, British Columbia--(Newsfile Corp. - November 24, 2020) - Velocity Minerals Ltd. (...
About this update from Velocity Minerals Ltd.
[{"type":"text","content":"Velocity Announces Closing of $8.9 Million Strategic Investment and Private PlacementVancouver, British Columbia--(Newsfile Corp. - November 24, 2020) - Velocity Minerals Ltd. (TSXV: VLC) (\"Velocity\" or the \"Company\") announces that it has closed a 9.99% strategic investment with Dundee Precious Metals Inc. (\"DPM\") whereby the Company has issued and sold 13,394,000 common shares to DPM for an aggregate purchase price of $6,697,000 (the \"Strategic Investment\") on a private placement basis.In connection with the Strategic Investment, Velocity issued to Artemis Gold Inc. (\"ARTG\") 4,000,000 common shares at a price of $0.50 per share for gross proceeds of $2,000,000, in connection with the exercise by ARTG of its participation right (the \"Participation Right Exercise\") to maintain its shareholdings of Velocity at approximately 22% on an issued and outstanding basis.In addition, an existing joint venture partner of the Company, Gorubso Kardzhali AD (\"Gorubso\"), subscribed for 500,000 common shares at a price of $0.50 per share for gross proceeds of $250,000 (the \"Ancillary Subscription\"; collectively with the Strategic Investment and the Participation Right Exercise, the \"Financing\").All securities issued in connection with the Financing are subject to a hold period of four months and one day in Canada. No brokerage fees were paid in connection with the Financing. \"We would like to welcome DPM and Gorubso as new shareholders of the Company, as well as acknowledging the continued support of Artemis, who remain as Velocity's largest shareholder,\" stated Keith Henderson, Velocity's President and CEO. \"The Company is well-financed to complete ambitious exploration programs in the Rozino area and at our other gold exploration projects in Bulgaria during 2021.\"The proceeds from the Financing will be used to advance the Company's Rozino project and other exploration properties, and for general working capital purposes.ARTG is a \"related party\" (as such term is defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\")) of Velocity in that ARTG holds more than 20% of the issued and outstanding voting securities of Velocity. The Participation Right Exercise constitutes a \"related party transaction\" as defined in MI 61-101. The Company relied on Section...