August 9 (SeeNews) – Canada’s Velocity Minerals said on Wednesday that it agreed with Bulgarian company Zelenrok, a wholly-owned unit of Australia’s Raiden Resources, to receive an exclusive option for the purchase of 75% interest in the Kalabak gold and copper project in Bulgaria.
The option for the acquisition is conditional on Velocity completing a total of 5,000 m drilling in the next five years and delivering an inferred mineral resource estimate for the property, the Canadian company said in a bourse filing. Financial details of the agreement were not disclosed.
Raiden Resources will retain the remaining 25% interest in the project should Velocity decide to exercise the option.
The Kalabak project is located in southeastern Bulgaria, close to Velocity’s Rozino gold deposit and the Ada Tepe gold mine owned by Dundee Precious Metals. The site has potential for epithermal gold-silver and porphyry copper-gold deposits, Velocity said.
Geochemical screening as part of the site’s planned exploration is set to be completed this year, with drill testing of targets slated for 2024.
In April, Velocity received approval from Canada’s TSX Venture Exchange for an amended binding agreement with Zelenrok to purchase in two stages up to 75% of the Zlatusha gold and copper project in Bulgaria.
Eastern Europe-focused Velocity Minerals owns 70% interest in each of the Tintyava, Momchil and Nadezhda properties as well as 100% in the Iglika property in southeastern Bulgaria.
