VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 1, 2017) - Velocity Minerals Ltd. (TSX VENTURE:VLC.H) ("Velocity") is pleased to announce that it has received conditional approval from the TSX Venture Exchange (the "TSXV") to close its Share Purchase and Sale Agreement with 1077076 B.C. Ltd., ("TargetCo"), and the shareholders of TargetCo, whereby Velocity will acquire all of the outstanding shares of TargetCo in exchange for common shares of Velocity (the "Transaction").
On completion of the Transaction, Velocity will hold (through TargetCo) options to acquire interests in the Tintyava property and the Ekuzya property located in south-eastern Bulgaria. See Velocity's news release of February 6, 2017 for full details of the Transaction and the related mineral property interests.
The following material changes have occurred since the date of the February 6, 2017 news release:
- The prospecting and exploration licence for the Tintyava property has been issued, and associated tender fee for same paid to the Ministry of Energy of the Republic of Bulgaria.
- The TSXV has determined that the 18,000,000 common shares of Velocity to be issued to the shareholders of TargetCo will be subject to a Surplus Escrow Agreement (within the meaning of applicable TSXV policies) and released as to 5% upon closing, 5% upon six months after closing, an additional 10% upon 12 and 18 months following closing, an additional 15% upon 24 and 30 months following closing, and the balance of 40% upon 36 months following closing.
- The concurrent private placement of Velocity units at $0.25 per unit has been increased to $2,000,000 (the "Financing"). Each unit will consist of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable for 12 months from issuance at $0.40 per share; subject to acceleration in certain circumstances.
- A technical report on the Ekuzya property, prepared in compliance with NI 43-101, has been approved by the TSXV and filed on SEDAR.
Velocity expects that the Transaction and the Financing will close on or about June 15, 2017.
