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Velocity Minerals Announces Closing of C$9M Strategic Investment by Atlantic Gold
VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) is pleased to announce that it
About this update from Velocity Minerals Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) -- Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) is pleased to announce that it has closed a C$9.0 million strategic investment (the “Strategic Investment”) with Atlantic Gold Corporation (TSXV: AGB) (“Atlantic Gold”) and its wholly-owned subsidiary, 1193490 B.C. Ltd. (the “Investor”). The Strategic Investment was comprised of a private placement of 18,600,000 units (each, a “Unit”) for total gross proceeds of approximately C$3.9 million (the “Equity Placement”) and a convertible debenture in the aggregate principal amount of approximately C$5.1 million (the “Convertible Placement”). As a result of the completion of the Strategic Investment, Atlantic Gold now owns 19.80% of the outstanding common shares of Velocity on a non-diluted basis and 39.05% on a partially-diluted basis. “We are very pleased to welcome Atlantic Gold as a shareholder of Velocity,” stated Keith Henderson, President & CEO of Velocity. “Since announcing the strategic investment, existing shareholders and new investors alike have expressed support for the transaction. With Atlantic Gold’s recent operational achievements in Nova Scotia, Velocity will benefit from their mine building expertise and shared corporate strategy of implementing a hub and spoke model of development.” Use of Proceeds Net proceeds from the Strategic Investment will be used to fund the advancement of the Rozino gold project located in southeast Bulgaria (“Rozino”) towards feasibility and permitting, including resource expansion and definition drilling, engineering studies, environmental monitoring and assessment, and for general working capital. In addition, Velocity will proceed to option and explore additional satellite deposits in the region. Planned Exploration The 2019 drill program at Rozino is now fully permitted and a total of 12,000m to 14,000m of drilling is planned. The drill program at Rozino is intended to include exploration drilling and infill drilling aimed at increasing the existing mineral resource base (see news release dated October 29, 2018) and improving resource definition. The drill program is also expected to support additional metallurgical and comminution studies, as well as hydrogeological and geotechnical work. Environmental ...