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Velocity Announces $3.5M Non-Brokered Private Placement
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About this update from Velocity Minerals Ltd.
[{"type":"text","content":" Not for distribution to United States newswire services or for release, publication, distribution or dissemination directly, or indirectly, in whole or in part, in or into the United States. VANCOUVER, British Columbia, March 22, 2018 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSX-V:VLC) (“Velocity” or the “Company”) announces a non-brokered private placement (the \"Financing\") of up to 17,500,000 units (the \"Units\") priced at $0.20 per Unit to raise total gross proceeds of up to $3.5 million. Each Unit will consist of one common share in the capital of Velocity (each, a \"Share\") and one-half of one warrant, with each whole warrant entitling the holder to purchase one common share in the capital of Velocity at a price of $0.30 per share for a period of 12 months from the closing of the Financing. All securities issued in connection with the Financing will be subject to a hold period of four-months and one day in Canada. The proceeds of the Financing are intended to fund ongoing work at the Company’s Balkan Gold Project, the cornerstone of which is the recently announced Exploration and Mining Alliance (the \"Alliance\") with the Bulgarian mining company Gorubso Kardzhali AD (“Gorubso”) (see news release February 22, 2018). In addition to exclusive access to an operating Carbon-In-Leach (CIL) processing plant, the Alliance provides Velocity with option agreements on multiple exploration projects and an operating gold mine within a 10,000km2 area in southeast Bulgaria. Rozino Project -- Planned work at the advanced Rozino gold project will include publication of a Preliminary Economic Assessment (“PEA”) prepared under NI 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\") in late 2018. The Company may exercise its option to acquire a 70% interest in the Rozino project through the publication of the PEA. The Company completed 7,500m of drilling prior to publishing a maiden inferred mineral resource estimate in early March 2018 (see news release March 5, 2018); 17 million tonnes grading 1.15g/t gold for 629,000 ounces of gold (0.5g/t cut-off grade)(1). Approximately 5,000m of additional drilling will be completed in the coming months before publishing the PEA and the report will include an updated resource estimate. The Company recently announced posit...