Velocity to Seek to Raise $1 Mln to Finance Gold Project in Bulgaria
Canadian mineral exploration and development company Velocity Minerals said on Tuesday that it will seek to raise up to $1 million (866,500 euro) through a non-brokered private placement in order to finance its Rozino gold project in Bulgaria. Velocity Minerals will offer investors up to 6,666,667 units at a price of $0.15 each, the company said in a statement. Each unit will consist of one common share in the capital of Velocity and one-half of one common share purchase warrant. Each whole warrant entitles its holder to purchase one common share in the capital of Velocity at a price of $0.20 per share for a period of three years from the placement. All placed securities will be subject to a hold period of four months and one day in Canada. The placement is subject to TSX Venture Exchange and other regulatory approval. Last month, Velocity Minerals said that it has completed an independent preliminary economic assessment (PEA) on its 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.