- Apollo Gold & Silver (APGO) has agreed to increase the size of its previously announced financing to a minimum of $46,000,000.50
- The company will sell, on a private placement basis, no less than 61,333,334 subscription receipts at a price of $0.75 per receipt
- If the option is exercised, gross proceeds of the upsized financing will be $52,900,000.50
- Apollo will use the proceeds to fund the acquisition of all issued and outstanding shares of Stronghold Silver Corp.
- Apollo has received the conditional acceptance of the TSXV for its acquisition of Stronghold
- The financing is expected to close on or about June 25, 2021
- Apollo Gold & Silver Corp. (APGO) is up 2.04 per cent, trading at C$1.00 per share at 3 pm ET
Apollo Gold & Silver (APGO) has agreed to increase the size of its previously announced financing.
The company will sell, on a private placement basis, no less than 61,333,334 subscription receipts at a price of $0.75 per receipt for minimum aggregate gross proceeds of $46,000,000.50.
The upsized offering is being led by Eight Capital, Desjardins Securities Inc. and Cantor Fitzgerald Canada Corporation, as co-lead agents and joint bookrunners.
Upon satisfaction of certain escrow release conditions, each subscription receipt shall be automatically exchanged for one unit of the company. Each unit shall consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one common share at a price of $1.25 for a period of 24 months from the date of issuance.
Apollo has granted the agents the option to offer for sale up to an additional 15% of the number of subscription receipts sold exercisable for a period of up to 48 hours prior to the closing of the upsized offering.
If the option is exercised, a maximum of 70,533,334 subscription receipts will be issued and the gross proceeds of the upsized financing will be $52,900,000.50.
Apollo will use the proceeds to fund the acquisition of all issued and outstanding shares of Stronghold Silver Corp.
If the option is not exercised by the agents, the net proceeds of the upsized Offering, together with the company’s existing treasury of $5,000,000, will be used as follows:
- $27M payable to Pan American Minerals Inc (a wholly-owned subsidiary of Pan American Silver Corp) for the purchase of the Waterloo Project
- $7.3M payable to Pan American within 25 days of the close of the Apollo-Stronghold transaction
- $7.2M for exploration and resource development work at the Calico Silver project
- $500K for option payments and mineral title taxes
- $1.5M for exploration at the Arizona Silver Project
- $5.1M in General and Administrative costs
If the over-allotment option is exercised, an additional $6.9M will be used for general corporate and business development activities.
Apollo has received the conditional acceptance of the TSXV for its acquisition of Stronghold. It is working to satisfy the TSXV’s requirements for final approval and the other conditions precedent to the transaction.
The financing is subject to certain conditions, including the approval of the TSXV.
The financing is expected to close on or about June 25, 2021.
Apollo Gold & Silver Corp is an exploration company operating in Canada. It is engaged in the acquisition and exploration of mineral resource deposits.
Apollo Gold & Silver Corp. (APGO) is up 2.04 per cent, trading at C$1.00 per share at 3 pm ET.
