Canada's Velocity Exercises Option to Acquire 70% Stake in Bulgarian Rozino Gold Project

Canadian mineral exploration and development company Velocity Minerals said on Monday that it has exercised its option to acquire a 70% interest in the Rozino gold project in Bulgaria from local peer Gorubso-Kardzhali through delivery of a Preliminary Economic Assessment (PEA).
"Exercise of the Option at Rozino through delivery of the PEA is a major milestone for the Company that has been achieved 14 months after initiating exploration at Rozino," Keith Henderson, Velocity’s president and CEO said in a statement. "The Company looks forward to updating shareholders as we ramp up exploration activities at Rozino project in Joint Venture with Gorubso," Henderson added.

Last month, Velocity raised $1 million through a non-brokered private placement and said it will use part of the funds to finance the Rozino gold project.

In September, Velocity announced that it has completed a PEA on the Rozino gold project in Bulgaria, envisaging an after-tax internal rate of return (IRR) of 33.1% and an after-tax NPV5% of $129 million (110 million euro). The PEA estimates steady state annual gold production of 65,000 ounces and peak annual output of 78,000 ounces. Capital costs are seen and $97.6 million, while sustaining capital is expected to amount to $6.3 million.