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Velocity Receives Notice of Early Conversion of $5,094,000 Convertible Debenture from Artemis Gold
Vancouver, British Columbia--(Newsfile Corp. - March 26, 2021) - Velocity Minerals Ltd. (TSXV:...
About this update from Velocity Minerals Ltd.
[{"type":"text","content":"Velocity Receives Notice of Early Conversion of $5,094,000 Convertible Debenture from Artemis GoldVancouver, British Columbia--(Newsfile Corp. - March 26, 2021) - Velocity Minerals Ltd. (TSXV: VLC) (\"Velocity\" or the \"Company\") announces that it has received a notice of early conversion from Artemis Gold Inc. (\"Artemis\") with respect to an 8.5% secured convertible debenture in the principal amount of $5,094,000 (the \"Convertible Debenture\") issued to Artemis in March 2019. The Convertible Debenture was issued in connection with a $9,000,000 strategic investment (the \"Strategic Investment\") by Artemis into the Company (see news release dated March 14, 2019).Pursuant to the terms of the Convertible Debenture, the Company will issue to Artemis an aggregate of 21,211,136 common shares at a conversion price of $0.25 per share (the \"Conversion\"), consisting of 20,376,000 shares issued in respect of the conversion of the principal amount of $5,094,000 and 835,136 shares in respect of the conversion of the outstanding accrued interest. Following the Conversion, Artemis will hold 50,701,138 common shares and 11,883,443 common share purchase warrants, representing approximately 32.3% of the Company's common shares on an issued and outstanding basis and 37.0% of the common shares on a partially-diluted basis. Artemis will have 10 business days following completion of the Conversion in which to discharge any remaining security interest created by the Convertible Debenture.\"Artemis' election to convert strengthens Velocity's balance sheet, simplifies the Company's capital structure, removes the long-term liability and interest expense of the debenture, and removes all security arrangements, ultimately clearing the path for future project finance,\" stated Keith Henderson, Velocity's President and CEO.About Velocity Minerals Ltd. Velocity is a gold exploration and development company focused on southeastern Bulgaria. Velocity's strategy is to develop a low cost centralized \"Hub and Spoke\" operation whereby multiple projects within this emerging gold district produce gold concentrates for trucking to a central processing plant for production of doré. The Company envisions staged open pit mining of satellite deposits and processing in a currently operating carbon-in-leach (CIL) plant. Velocity has a 70% interest in the Tinty...