Atlantic Gold to make C$9M strategic investment in Velocity Minerals
9.00 Million CAD
On January 17, 2019, Velocity Minerals Ltd. announced that it has entered into an agreement with Atlantic Gold Corporation whereby Atlantic will make a C$9 million strategic investment in Velocity. Atlantic has also agreed to purchase 18,600,000 units of Velocity via private placement at a price of C$0.21 per unit for gross proceeds of approximately C$3.9 million. In addition, Velocity will issue to Atlantic approximately C$5.1 million principal amount of 8.5% secured convertible debentures. Upon closing of the strategic investment, Atlantic will own 19.9% of Velocity's outstanding common shares on a non-diluted basis and 39.2% on a partially-diluted basis.
Velocity plans to use the proceeds from the investment to fund the advancement of its Rozino gold project in Bulgaria, including resource expansion and definition drilling, engineering studies, and environmental monitoring and assessment.
Velocity is a Vancouver-based gold exploration and development company focused on eastern Europe.
McCarthy Tétrault LLP is advising Velocity with a team led by Roger Taplin that includes James Clinton.