Velocity Provides Update on Sale of Bulgarian Assets
Velocity awaits the release of a $38.5 million tranche as its asset sale closing becomes imminent.
Türker Global Madencilik has issued written notice electing to proceed to the closing of the acquisition of the Tintyava Exploration Assets. The total transaction value for the Tintyava assets is US$55.0 million, of which US$16.5 million was previously received. The remaining Completion Payment of US$38.5 million, representing 70% of the total, is to be paid to an escrow agent prior to closing.
Closing is anticipated on or about December 14, 2026, subject to the satisfaction or waiver of conditions precedent and funding requirements. Closing will trigger five business days after Türker confirms the Completion Payment has been paid to and received by the escrow agent.
Türker retains a separate option to acquire additional Non-Tintyava assets for an additional US$4.0 million. The October 15, 2026 notice does not constitute an exercise of the additional option; it remains exercisable per the Definitive Agreement.
Velocity Minerals Ltd. (VLC) confirmed that the sale process is advancing toward the anticipated December 2026 closing window, a direct follow-up to November 2025 transaction updates. The market was already aware of the 18-month closing timeline from June 2025 and the $38.5M remaining tranche. The news confirms execution but introduces no new financial terms or unexpected delays.
The transaction is positive for long-term liquidity upon closing, as the $38.5M will flow into Velocity. However, the company currently faces a working capital deficit and a going concern flag, with $16.5M of cash restricted to secure a letter of credit for partner Gorubso. The news is incremental and expected. It validates management's execution but does not materially alter the risk/reward profile until the escrow funds are released and the feasibility study timeline is clarified.
Velocity Minerals Ltd. (VLC) operates a hub-and-spoke development model centered on the Rozino Gold Project in Bulgaria, which is a 70%/30% joint venture with Gorubso Kardzhali AD. The project’s development strategy involves conventional open-pit mining with on-site flotation and downstream processing.
A revised Pre-Feasibility Study highlights the following key metrics:
- Life-of-Mine production: 368,000 oz gold (steady-state ~59,400 oz/yr).
- After-tax NPV5: US$163 million at US$1,500/oz gold.
- Pre-production capital cost: US$87.1 million; total capex: US$94.8 million.
- Low cash cost: $699/oz; All-in sustaining cost: $755/oz.
- High recovery to doré: 79.3%.
- Small environmental footprint with non-acid-generating waste.