- Apollo Minerals has entered into an earn-in agreement with Trek Metals to purchase up to 80 per cent interest in the Kroussou zinc-lead project
- It will spend $2 million on the project within three years to earn 70 per cent interest
- A further $2 million is required to earn an extra 10 per cent
- It is offering a one for one pro rata non-renounceable entitlement issue at $0.025 per share to raise $4.2 million
Apollo Minerals has entered an earn-in agreement with Trek Metals to purchase up to 80 per cent interest in the Kroussou zinc-lead project.
Apollo will spend $2 million on the project within three years to earn 70 per cent interest. To earn an extra 10 per cent it will need to spend a further $2 million in five years.
To pay for the agreement Apollo is hoping to raise $4.2 million through a one for one pro rata non-renounceable entitlement issue at $0.025 per share.
Eligible shareholders will be entitled to acquire one new ordinary share for each ordinary share held at the record date.
The Kroussou Project is located in the Ngounié Province, Western Gabon, Africa and has mineral occurrences in 18 channels (prospects) each representing an exploration target.
Four of the 18 prospects have been drill tested to date, with all four intersecting zinc-lead mineralisation.
Previous work at the project identified 150 zinc-lead mineral occurrences over a 70 kilometre strike length of prospective geology.
Apollo said exploration at Kroussou can begin quickly.
“Exploration can commence quickly given the existence of local drilling contractors, existing site infrastructure and good access to drill targets using logging tracks,” it stated.
Proposed work plans at the project include: a drilling program, prioritising targets, surface exploration programs, creating road access to new prospects and the commencement of feasibility studies.
Apollo Minerals has dropped 10 per cent today and is currently selling shares at $0.027 apiece at AEST 10:19 am.