Turkish Conglomerate Acquires Canadian Gold Mining Projects in Bulgaria
Canadian company Velocity Minerals, which oversees various gold and copper mining projects in Bulgaria, including Rozino and Iglika, has announced the sale of its Bulgarian assets to the Turkish conglomerate Türkerler for 59 million US Dollars, "Club Z" reports. Among the projects under Velocity’s control are "Momchil", "Dangovo", and "Nadezhda". The Turkish holding, based in Ankara and employing over 24,000 people, has been active for more than 50 years in energy, construction, and mining sectors.
The Canadian company shared details of the transaction on its website, noting that payment will be split into two installments: 15 million dollars initially, followed by a second payment of 44 million dollars, to be made within 18 months of the deal’s closure. The second payment can be reduced by 1.5 million dollars if settled within 12 months. Additionally, a penalty clause requires a 5% fee if the transaction fails to finalize.
The deal is expected to close by January 31, 2025, pending regulatory approvals, due diligence by the Turkish buyer, and approval from at least two-thirds of Velocity’s shareholders. Gorubso - Kardzhali AD, which holds a 30% stake in the Rozino project, will receive its share of the sale price, set at 55 million dollars.
Keith Henderson, President and CEO of Velocity Minerals, expressed satisfaction with securing the deal and emphasized that Türkerler’s diversified portfolio, which includes over 6 billion dollars in ongoing projects, makes the company well-positioned to further develop assets like Rozino with support from Velocity's local team.
Henderson also highlighted the potential positive impact on the local community, particularly in the Ivaylovgrad region, where the Rozino project is located. He noted that investment in the resource sector could bring significant economic benefits, especially as the nearby Ada Tepe mine is scheduled to close in 2026, making the development of the Rozino mine critical for maintaining employment.
Dundee Precious Metals (DPM), another Canadian company, continues to operate one of Bulgaria’s largest copper-gold ore mines in the village of Chelopech, with operations set to continue until 2032. DPM’s Bulgarian subsidiary also controls the Ada Tepe mine.
Source: https://www.novinite.com/