Velocity Announces Up To $1.38 Million Non-Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 5, 2023) - Velocity Minerals Ltd. (TSXV: VLC) ("Velocity" or the "Company") announces that the Company has initiated a strategic review process and has engaged Leede Jones Gable Inc. (the "Advisor") to assist it in its review. The Advisor will work with Velocity's management and Board to evaluate a range of strategic alternatives that may be available to the Company to grow and maximize value for all shareholders (the "Engagement"). There can be no assurance that this process will result in any specific strategic plan or financial transaction and no timetable has been set for its completion. The Company does not plan to provide updates on the status of the review unless there are material developments to report.
The Company also announces a non-brokered private placement (the "Financing") of up to 9,200,000 units of the Company (the "Units") priced at $0.15 per Unit for total gross proceeds of up to $1,380,000. Each Unit will consist of one common share in the capital of the Company (each, a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"), with each Warrant entitling the holder thereof to purchase one Share at a price of $0.25 per Share for a period of 18 months from the closing of the Financing.
The proceeds of the Financing are intended to fund ongoing work at the Company's gold and copper exploration projects and for general working capital.
All securities issued in connection with the Financing will be subject to a hold period of four-months and one day in Canada. The closing of the Financing is subject to TSX Venture Exchange ("TSXV") and other regulatory approval.
The Company may pay finder's fees on a portion of the Financing consisting of a cash commission equal to 7% of the gross proceeds raised and finder's warrants equal to 7% of the number of Units issued, where each finder's warrant will entitle the holder thereof to purchase one Share at a price of $0.15 per Share for a period of 12 months from the closing of the Financing.
This news release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
On Behalf of the Board of Directors
"Keith Henderson"
President & CEO
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