Business
Velocity Receives US $16.5 Million First Tranche Payment from Türker Global Madencilik Sanayi Ve Ticaret A.S.
Arranges Standby Letter of Credit in Favour of Gorubso Kardzhali A.D. Vancouver, British Columbi...
About this update from Velocity Minerals Ltd.
[{"type":"text","content":"Velocity Receives US $16.5 Million First Tranche Payment from Türker Global Madencilik Sanayi Ve Ticaret A.S.Arranges Standby Letter of Credit in Favour of Gorubso Kardzhali A.D.Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - Velocity Minerals Ltd. (TSXV: VLC) (OTCQB: VLCJF) (\"Velocity\" or the \"Company\") announces that, further to its previous news releases (October 1, November 29, December 17, 2024, February 28, 2025, and April 16, 2025), and pursuant to a definitive share purchase and option agreement made as of February 24, 2025 (the \"Definitive Agreement\") with Türker Global Madencilik Sanayi Ve Ticaret A.Ş. (\"Türker Mining\") whereby Velocity agreed to, inter alia, sell its 70% interest in the Rozino project, together with certain licences, licence applications and associated tenures and rights (the \"Rozino Project\") to Türker Mining (the \"Transaction\"), it has received the initial payment from Türker Mining in the amount of US $16.5 million (the \"First Tranche Payment\").In connection with Velocity's receipt of the First Tranche Payment, the Company has arranged a standby letter of credit in the amount of US $16.5 million to be issued to Gorubso-Kardzhali AD (\"Gorubso\"), which holds a 30% interest in the Rozino Project. The standby letter of credit will secure Velocity's obligations regarding (i) the return to Gorubso of the share certificates Gorubso deposited into escrow in the event the Transaction does not close, and (ii) the payment to Gorubso of 30% of the Rozino Project purchase price if the Transaction does close. The First Tranche Payment is being held as collateral for the standby letter of credit and therefore is considered restricted cash and is unavailable to Velocity for working capital purposes.On Behalf of the Board of Directors\"Keith Henderson\"President & CEOFor further information, please contact: Keith HendersonPhone: +1-604-484-1233E-mail: [email protected]: www.velocityminerals.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.This news release contains forward-looking statements and forward-looking information (collectively, \"forward looking statements\") within the mea...