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- Junior gold explorer Apollo Consolidated (AOP) has sold its interest in two West African projects to Ibaera Capital Fund for $7 million
- The Bagoe and Liberty projects are in Cote d’Ivoire
- Fellow ASX-listed Exore Resources (EXR) owns the remaining 80 per cent of the project and has a chance to block the Apollo sale
- Back in 2018, Exore paid $4.05 million worth of shares for an 80 per cent interest in both of the projects
- This means Apollo banks more cash from today’s 20 per cent sale than it did for the 80 per cent sale two years ago
- Apollo shares are trading just over four per cent lower today, currently worth 5.3 cents each
Junior gold explorer Apollo Consolidated (AOP) has sold off its interest in two West African projects to Ibaera Capital Fund for $7 million.
Apollo first divested the majority of the Bagoe and Liberty projects in Cote d’Ivoire in 2018. The company sold 80 per cent of the projects to fellow ASX-listed Exore Resources (ERX), called Novo Litio (NLI) at the time.
In return for the majority interest in the projects, Apollo was paid 90 million ERX shares which were then worth 4.5 cents each — valuing the transaction at $4.05 million.
At the time, Apollo said a recent “outstanding” discovery at its Lake Rebecca Gold Project in Western Australia demanded the company’s time and funds, so the call was made to largely divest from its West African assets.
Today, Apollo has washed its hand completely from the Bagoe and Liberty projects by selling its remaining 20 per cent interests to Ibaera.
The fund manager will pay US$4.5 million (A$7 million) for the purchase, meaning Apollo banks more from today’s transaction than it did from selling off the bulk of the projects two years ago.
Exore, who still owns the other 80 per cent, has a chance to step in and block the transaction under its existing joint venture contract with Apollo. If Exore does not exercise its rights under the contract, the Apollo-Ibaera sale will be completed 15 days after in-country approvals have been received.
Apollo Managing Director Nick Castleden said the extra funds bagged from this sale will bring the company’s cash position to well over $20 million.
“Our previous decisions to focus on building value at Rebecca has been supported by strong subsequent results, and in our view, this represents an attractive premium relative to the value of the interests inferred from recent ERX share price trading values,” Nick said.
Nevertheless, Apollo is not leaving African soil entirely; the company still holds its 1.2 per cent royalty over the Seguela project in Cote d’Ivoire which is owned by Roxgold.
Shares in Apollo spiked this morning but have since reversed their gains. At lunchtime AEST, Apollo shares are down 4.17 per cent and worth 23 cents each.
Exore shares are in a trading halt today but last closed worth 5.3 cents each.
