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Stonegate Capital Partners Initiates Coverage on Velocity Minerals LTD. (TSXV:VLC)

DALLAS, TX / ACCESSWIRE / August 7, 2020 / Velocity Minerals (TSXV:VLC):

The full report can be accessed by clicking on the following link: http://stonegateinc.com/reports/VLC.V%20Initiation%20%20.pdf

COMPANY DESCRIPTION

Velocity Minerals Ltd. (TSXV:VLC) is a precious metals exploration and development company with current operations in Bulgaria. The Company is currently developing its five projects through their "Hub & Spoke" development strategy, in which envision open pit mining of satellite deposits and processing through a central plant. The Company's most advanced project is the Rozino Gold Project located within the Tintyava Property approximately 350KM Southeast of the Capital, Sofia. The Company's portfolio also consists of options to earn interests in the Obichnik, Makedontsi, Sedefche, and Iglika Gold Projects. Velocity Minerals was incorporated in 2000 and is headquartered in Vancouver, Canada. The current management team took over the Company in a reverse takeover following the acquisition of the Rozino Project in July 2017.

SUMMARY

  • Velocity Minerals is a gold exploration and developments company focused on their exploration assets in Bulgaria. The Company has multiple advanced gold projects with near surface deposits within a gold deposit that has been underexplored.

  • The Company will be implementing their "Hub & Spoke" development strategy to increase all of their project's economic prospects. Their strategy consists of using open pits at each of their "satellite" locations and trucking concentrate to a central processing plant that is already in place. The "Hub & Spoke" model has been successfully implemented by St. Barbara in Canada.

  • The Rozino Gold Project is Velocity's flagship project where a preliminary economic assessment has shown an inferred mineral resource estimate of 573,000 oz of gold. The Preliminary economic assessment also resulted in an after-tax NPV of $129M, which assumed $1,250 gold prices.

  • The Central processing plant Velocity intends to use has been operating since 2011 and is certified under the International Cyanide Management Code (ICMI). The processing plant has been operated by their Bulgarian partner Gorubso-Kardzhali AD and is the only Company in Bulgaria to secure a CIL operating permit.

  • All of Velocity's projects have positive common features including all-in sustaining-costs in the range of $550-$650/oz, low initial capital expenditures, low strip to deposit ratio, and proven resource expansion at the existing deposits.

  • The Company is well capitalized with $7.1M in cash and equivalents as of March 31, 2020 after raising approximately $5.6M in February 2020. The Company currently burns approximately $750,000/month, so their cash position should be sufficient to fund them until the results of their prefeasibility study at Rozino in Q3 2020.

  • The Company's management team and board include mining industry professionals with experience in Europe, Africa, Australia, and the Americas as employees of major mining companies as well as founders and senior executives of public companies.

  • The country of Bulgaria is politically stable and is served by modern European infrastructure of paved roads. Mining royalties are comparable to countries like Canada, Peru and Chile and the country also boasts a low corporate tax rate of 10%.

  • Based on our DCF of VLC, we arrive at a valuation range of ~CAD$0.59-$0.90, with a midpoint of ~$0.73; see page 7 for further details.

About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high-quality investment opportunities.

CONTACT:

Stonegate Capital Partners
Shane Martin, CFA
(214) 987-4121
shane@stonegateinc.com

SOURCE: Stonegate Capital Partners



View source version on accesswire.com:
https://www.accesswire.com/600661/Stonegate-Capital-Partners-Initiates-Coverage-on-Velocity-Minerals-LTD-TSXVVLC

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