Velocity Minerals closes $1.29M private placement

News Release

September 26, 2017
Velocity Closes Non‐Brokered Private Placement Grants Incentive Stock Options

Vancouver, British Columbia – Velocity Minerals Ltd. (TSXV: VLC) (“Velocity” or the “Company”) announces that it has closed the non‐brokered private placement announced on September 7, 2017 (the “Financing”). As a result of the Financing, the Company issued a total of 3,803,176 units (the “Units”), priced at $0.34 per Unit to raise gross proceeds of $1,293,079.84. Each Unit consisted of one common share of the Company and one‐half of one warrant, with each whole warrant entitling the holder thereof to purchase one common share of the Company for $0.50 for a period of 12 months from the closing of the Financing. The Company also paid finder’s fees on a portion of the Financing to Blackswan B.V ($23,800 and 70,000 finder’s warrants), Haywood Securities Inc. ($7,140 and 21,000 finder’s warrants), Leede Jones Gable Inc. ($39,508 and 116,200 finder’s warrants) and Intrynsyc Capital Corporation ($1,428 and 4,200 finder’s warrants). The finder’s fees consisted of a cash commission equal to 7% of the gross proceeds raised by each finder and finder’s warrants equal to 7% of the corresponding number of Units issued. Each finder’s warrant entitles the holder thereof to purchase one common share of Velocity for $0.34 for a period of 12 months from the closing of the Financing. The common shares and warrants comprising the Units and the finder’s warrants are subject to a hold period of four‐months and one day in Canada.

The Company intends to use the proceeds of the Financing to fund the addition of a second drill rig at the Company’s Rozino gold project and for general working capital purposes.

The Company also announces that it has granted stock options to certain officers, employees and consultants of the Company and its affiliates to purchase up to 700,000 common shares of the Company in accordance with the terms of the Company’s stock option plan. The options, which are fully vested as at the date of grant, are exercisable on or before September 26, 2022 at a price of $0.35 per share.

This news release does not constitute an offer of sale of any of the above‐mentioned securities in the United States. The foregoing securities have not been and will not be registered under the United States 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.

About Velocity Minerals Ltd.

Velocity is a gold exploration and development company focussed on eastern Europe. The Company’s management and board includes mining industry professionals with over 100 years of combined experience spanning Europe, Asia, and the Americas as employees of major mining companies as well as founders and senior executives of junior to mid‐tier public companies. The team’s experience includes all aspects of mineral exploration, resource definition, feasibility, finance, mine construction and mine operation as well as a track record in managing publicly listed companies.

The Company’s portfolio of advanced gold exploration assets is currently in Bulgaria, which is a member of the European Union (since 2007) and an attractive destination for mining investment. The country’s mining law was established in 1999 and updated in 2011. Mining royalties are low and compare favourably with more established mining countries like Canada, Peru and Chile. Bulgaria also boasts a corporate tax rate of only 10% and the country’s education system has yielded a good availability of experienced mining professionals in a favourable cost environment. Foreign mining companies are successfully operating in Bulgaria.

Local knowledge and experience are essential components of mining investment in a foreign jurisdiction. Velocity Minerals has entered into a number of option agreements with Gorubso Kardzhali A.D. (“Gorubso”), an established and respected mining company in Bulgaria. Gorubso operates the underground Chala Gold Mine (2006) and the Kardzhali Carbon In Leach (CIL) processing plant (2011), which produces gold dore. Gorubso is the first and only company in Bulgaria to have secured a permit for cyanide‐related processing of gold ores. Velocity’s management has a long‐standing relationship with Gorubso as well as significant previous experience in Bulgaria and elsewhere in the region.

On Behalf of the Board of Directors
“Keith Henderson”
President & CEO

For further information, please contact: Keith Henderson
Phone: +1‐604‐638‐3456

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.