Apollo Minerals Ltd (ASX:AON) is raising $7.2 million to accelerate activities at its zinc-lead Kroussou Project in the Ngounié Province of western Gabon.
The company has secured firm commitments from institutional and high net worth investors to subscribe for 90 million new ordinary shares at an issue price of A$0.08.
Joining the registry will be highly regarded, globally leading investment funds including Sprott Capital Partners, a leading North American-based asset management firm with an excellent track record of identifying and funding successful early-stage resource projects.
Sprott acted as financial adviser to AON in the placement and its support for AON demonstrates the significance of the zinc and lead discoveries evolving at Kroussou Project.
Advancing Kroussou
The money raised will go towards AON’s plans to develop its zinc-lead project.
“We are extremely pleased to have secured strategic support from Sprott and to welcome new high calibre investors as fellow shareholders of Apollo Minerals,” executive director Neil Inwood said.
“The placement will enable the company to accelerate exploration activities and advance our plans to unlock the exceptional scale and quality potential we are discovering at Kroussou.
"We are excited by the opportunity to build international recognition of Kroussou’s significance and look forward to working with Sprott and others to build value for shareholders.”
AON holds Prospecting Licence G4-569 which covers 986.5 square kilometres of the Kroussou Project which is approximately 220 kilometres southeast of the capital city of Libreville.
The project is easily accessible by the major sealed N1 road from Libreville and well-maintained provincial roads to towns bordering the project. Well-established and wide forestry tracks are present within the project area to the camp and exploration sites.
What’s next
AON recently completed its 2021 diamond drilling program at Kroussou, with assay results due shortly.
Results so far continue to support the potential for a large-scale, shallow, flat-lying, broadly mineralised system with continuity across multiple zones.
There are multiple opportunities for further discovery of zinc-lead mineralisation at Kroussou within the remaining untested channels.
The zinc-lead discoveries made at Kroussou are represented by thick intercepts at shallow depths with geometry that is interpreted to be favourable to simple low-cost open-pit mining scenarios.
AON is now planning an aggressive acceleration of exploration and development activity at Kroussou in 2022 including:
- Comprehensive geophysical surveys to prioritise project targets;
- Further drilling programs;
- Metallurgical test-work; and
- Commencement of technical studies to confirm project viability.