Apollo Minerals Ltd (ASX:AON) will raise up to $4.4 million as part of a comprehensive recapitalisation process and will restructure its board as well, including the appointment of Ian Middlemas as chairman of the company.
Ian Middlemas has a track record of identifying and developing major resource projects and is the current chairman of Salt Lake Potash Limited, Berkeley Energia Limited, Equatorial Resources Limited and a number of other listed resource companies.
Middlemas was also previously chairman of Papillon Resources Limited in a $614 million exit deal for shareholders.
Prior to the issue of new shares, Apollo will consolidate its outstanding shares 1 for 4, thereby reducing the number of shares on issue to 19.5 million.
Following completion of the consolidation, the company will undertake a placement of 34 million shares at $0.05 each to raise $1.7 million.
The share placement will be made to eligible investors, with the largest participant being Arredo Pty Ltd, a company associated with Mr Ian Middlemas and 4 million shares to Mr Richard Shemesian, a current director of the Company.
Following completion of the above steps, the company will then undertake a 1 for 1 pro rata non-renounceable entitlements issue at $0.05 per share on a post consolidation basis to raise an additional $2.7 million before costs.
Additionally, Apollo will appoint Mark Pearce as a director and new company secretary.
The company is aiming for a more efficient operational and administrative cost structure as part of the recapitalisation process, to pursue new opportunities and to progress Apollo’s current projects.
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