Apollo Minerals Ltd (ASX:AON) has launched a non-renounceable entitlements offer to raise up to $4.34 million before costs through the issue of up to 96,454,472 new fully paid ordinary shares.
Under the offer, eligible shareholders will have the opportunity to purchase one new share for every five fully paid ordinary shares held in Apollo Minerals at the record date, at an issue price of $0.045 per new share.
Shortfall component
In addition to their entitlement, eligible shareholders may apply for additional new shares as part of any available shortfall in the entitlements offer.
Eligible shareholders with a registered address in Australia, New Zealand, Germany, Singapore, United Arab Emirates, British Virgin Islands or the United Kingdom as at the record date will be sent an offer document and accompanying personalised entitlement and acceptance form.
Cash for exploration in Gabon
The company plans to use the cash from the offer to advance exploration activities at its 100%-owned, globally significant Kroussou Zinc-Lead Project in the Ngounié Province of western Gabon, as well as for general working capital purposes including corporate and administrative costs.
Directors of the company have committed to take up their entitlements under the offer and to partially underwrite it by applying for shortfall shares, up to a combined total of around $700,000.
Taurus Capital Group Pty Ltd has been appointed to act as lead manager, on a best endeavours basis, to manage the placement of any additional shortfall that may arise from the entitlements offer.
The allocation of any shortfall shares will be determined by the directors in accordance with the terms and conditions contained in the offer document.