A good portion of the acquisition value ($55 million) might be attributed to the Rozino mission, a part of Velocity’s 70% owned Tintyava property located in Bulgaria’s Ivaylovgrad municipality. The mission is permitted and has been superior to the pre-feasibility stage. The deposit incorporates a possible mineral reserve of 11.8 million tonnes at 1.22 grams per tonne gold.
Earlier this yr, Velocity and its three way partnership associate Gorubso-Kardzhali agreed to put the mission up on the market on a 100% foundation. With the sale, Gorubso-Kardzhali might be entitled to 30% of the attributed value.
Velocity CEO Keith Henderson mentioned Türkerler, whose investments give attention to renewable vitality initiatives, is “very effectively positioned to take belongings just like the Rozino mission to the following levels of growth.”
A December 2021 pre-feasibility examine outlined a low-cost gold mine with all-in sustaining value of $755/oz. Over a seven-year mine life, it’s anticipated to supply 465,000 oz. of gold. The report additionally estimated an after-tax web current worth (at 5% low cost) of $123 million and an inside fee of return of 27.4%.
“This funding within the Rozino mission might be significantly welcome information for the residents of the Ivaylovgrad area as resource-sector investments are likely to deliver far-reaching financial advantages for native residents and native companies,” Henderson mentioned.
He additionally famous that the neighbouring Ada Tepe mine, developed by Dundee Valuable Metals, is anticipated to shut in 2026, so the event of the Rozino mission mine “might be essential to safe employment on this a part of Bulgaria.”
“Shifting ahead, Velocity is taking a look at potential acquisition alternatives all through Europe to establish initiatives the place we will once more add vital worth to underappreciated belongings,” Henderson mentioned. The corporate presently holds 70% pursuits in a number of different initiatives in Bulgaria together with Obichnik, which additionally has a useful resource estimate.
Shares of Velocity Minerals shot as much as a 52-week excessive of C$0.25 following the announcement on Tuesday. By 11:20 a.m. ET, the inventory had retreated to C$0.20 apiece, however nonetheless 29% greater on the day. The miner has a market capitalization of C$38 million ($28.1m).