Apollo Gold Closes $5 Million Private Placement
August 06 2020 - 6:45PM
Apollo Gold Corp. TSX.V: APGO
(“
Apollo” or the "
Company") is
pleased to announce that, further to its news release dated June
23, 2020, it has closed a non-brokered private placement of
10,000,000 units of the Company (the “Units”) at $0.50 per Unit for
gross proceeds of $5,000,000 (the “Offering”).
Each Unit consists of one common share in the
capital of the Company (a “Share”) and one-half of one common share
purchase warrant (each whole warrant a “Warrant”). Each Warrant
will entitle the holder to purchase one additional common share in
the capital of the Company (a “Warrant Share”) at a price of $0.75
per Warrant Share for a period of two years from the date of
issuance of the Warrants.
All securities issued in connection with the
Offering are subject to a statutory hold period ending on December
5, 2020 in accordance with the policies of TSX Venture Exchange and
applicable securities legislation. The Company paid aggregate cash
finders' fees totalling $241,385 and issued 498,470 finders’
warrants to certain eligible finders. Each finder’s warrant
entitles the holder to purchase one Share at an exercise price of
$0.75 per Share for a period of two years from the date of issuance
of the finders’ warrants.
Andrew Bowering, Director and Chairman of the
Company participated in the private placement and acquired 80,000
Units. The purchase constitutes a “related party transaction”
within the meaning of Multilateral Instrument 61-101 – Protection
of Minority Security Holders in Special Transactions (“MI
61-101”). The issuance is exempt from the formal valuation
and minority shareholder approval requirements of MI 61-101 as it
was a distribution of securities for cash and the fair market value
of the Units issued to or the consideration paid by such insider
did not exceed 25% of the Company’s market capitalization.
The Company did not file a material change
report more than 21 days before the expected closing of the
offering because the details of the participation therein by the
related party of the Company were not settled until shortly prior
to the closing of the offering and the Company wished to close on
an expedited basis for business reasons.
The Company intends to use the net proceeds of
the Offering to finance payments and costs related to its projects
in Chile and Mexico, including the associated work programs
currently anticipated for Q4 2020 / Q1 2021 in both jurisdictions.
Net proceeds of the financing will also be used for working capital
and general corporate purposes.
Simon Clarke, CEO of Apollo Gold stated, “we are
pleased to close this over-subscribed Offering at this key time in
the commodity cycle and to strengthen our balance sheet as we
finalize arrangements in both Chile and Mexico relating to the
acquisition of highly prospective gold assets and ahead of
launching initial work programs in both countries. We continue to
pursue our strategy of looking to secure and develop assets in Tier
1 mining jurisdictions which we believe have the potential to
develop into world-class gold projects.”
On behalf of the Board of Directors
APOLLO GOLD CORP. “Simon Clarke”Simon Clarke,
Chief Executive Officer
About Apollo Gold Corp. (TSX.V:
APGO)Apollo Gold has assembled a team that is exploring for world
class gold deposits in tier-one jurisdictions. Positioned for a
prolonged gold cycle, the Company’s initial 5,329-hectare project
lies in the heart of the Republic of Chile’s prolific El Indio Gold
Belt surrounded by some of the largest gold companies/mines in the
world. The Company is also focused on acquiring quality assets in
Mexico and recently announced a letter of intent to enter into an
option to acquire 5,240 hectares in a district with a history of
gold and silver mining and with a number of deposits nearby.
Apollo’s team offers global resource sector experience focused on
exploration and development with a track-record in advancing
projects and creating shareholder value.
For further information, please contactApollo
Gold Corp.Simon ClarkeTel: +1 (604)
551-9665simonpclarke65@gmail.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding “Forward-Looking”
Information
Statements in this news release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed here and
elsewhere in the Company’s periodic filings with Canadian
securities regulators. When used in this news release, words such
as “will”, “could”, “plan”, “estimate”, “expect”, “intend”, “may”,
“potential”, “appear”, “should,” and similar expressions, are
forward-looking statements.
Although Apollo Gold Corp. has attempted to
identify important factors that could cause actual results,
performance or achievements to differ materially from those
contained in the forward-looking statements, there can be other
factors that cause results, performance or achievements not to be
as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate or that
management's expectations or estimates of future developments,
circumstances or results will materialize. As a result of these
risks and uncertainties, the results or events predicted in these
forward-looking statements may differ materially from actual
results or events.
Accordingly, readers should not place undue
reliance on forward-looking statements. The forward-looking
statements in this news release are made as of the date of this
news release, and the Company disclaims any intention or obligation
to update or revise such information, except as required by
applicable law.
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