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Velocity Enters into Option Agreement with Dundee Precious Metals
10,000m Exploration Drilling Initiated Vancouver, British Columbia--(Newsfile Corp. - June 12, 2...
About this update from Velocity Minerals Ltd.
[{"type":"text","content":"Velocity Enters into Option Agreement with Dundee Precious Metals10,000m Exploration Drilling InitiatedVancouver, British Columbia--(Newsfile Corp. - June 12, 2023) - Velocity Minerals Ltd. (TSXV: VLC) (OTCQB: VLCJF) (\"Velocity\" or the \"Company\") announces that it has entered into a binding letter agreement (the \"Letter Agreement\") with Dundee Precious Metals Inc. (\"DPM\"), whereby Velocity has granted to DPM an exclusive option to acquire a 75% interest (the \"Option\") in and to the Iglika copper-gold prospecting license (the \"Property\"), located in Bulgaria (the \"Property\").Commercial TermsTo exercise the Option in full, DPM must: (i) make a US$250,000 initial cash payment to Velocity; (ii) fund a total of 40,000 meters of drilling on the Property; (iii) fund and deliver a mineral resource estimate on a deposit located within the Property prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\"); (iv) fund and deliver a prefeasibility study on a deposit located within the Property prepared in accordance with NI 43-101; and (v) make a further US$1,500,000 cash payment to Velocity (collectively, the \"Earn-In Requirements\"), all over a period of five (5) years (Table 1).The US$250,000 cash payment due to Velocity within five (5) business days of the execution of the Letter Agreement by DPM and the 10,000 meters of drilling to be funded and completed prior to the first anniversary of the Effective Date, are binding commitments of DPM. DPM will be under no obligation to fulfill any of the remaining Earn-In Requirements and may accelerate the satisfaction of the Earn-In Requirements without penalty, at its election.If DPM completes the Earn-In Requirements during the Option term, it shall acquire an indirect 75% legal interest in the Property, subject to an existing 2% net smelter returns royalty, and DPM and Velocity shall be deemed to have formed a joint venture (\"JV\") for the continued exploration and development of the Property. If a participant's participating interest in the JV falls below 10%, that participant shall be required to transfer its participating interest to the other participant in exchange for the grant of an ongoing royalty to be paid at 2% of net smelter returns (the \"NSR Royalty\"), half of which (being 1%) can be bought-out prior to a ...