- Apollo Gold (APGO) has completed the initial obligations for its option agreement with Lithium Chile
- The deal, announced in early April, will allow Apollo to earn up to 90 per cent in the Apollo and Sancarron concessions
- The earn-in agreement will require Apollo to pay $1.35 million in cash and $5 million in exploration expenditure on the property to earn a 90 per cent interest in the property
- The company recently filed a draft report with the TSX Venture Exchange pertaining to the agreement
- Apollo Gold (APGO) is in the grey and is trading at $1.20 per share
Apollo Gold (APGO) has completed the initial obligations for its option agreement with Lithium Chile.
The deal, announced in early April, will allow Apollo to earn up to 90 per cent in the Apollo and Sancarron concessions, which comprise five exploration and 18 right to mine concessions totalling 5,329 hectares in the El Indio Gold belt.
The deal was contingent on a national instrument 43-1010 report being filed for the properties, alongside requisite title transfers.
The national instrument report remains in draft, as the author of the report cannot inspect the properties, due to COVID-19 restrictions. Despite this setback, the company recently filed the draft report with the TSX Venture Exchange.
To acquire the 90 per cent stake, Apollo Gold will need to make payments totalling C$1.35 million, alongside $5 million in exploration expenditures on the two properties over the next five years.
Previous exploration work from the properties by the previous owned Lithium Chile has returned rock samples that graded from 2.1 grams per tonne gold to 97.48 grams per tonne gold and 46.4 grams per tonne silver to 148.8 grams per tonne silver.
CEO of Apollo Gold Simon Clarke said he was very pleased to see the option agreement was now unconditional, allowing the company to begin the initial exploration programs at the newly acquired concessions.
“With the size and scale of the mines and deposits in the surrounding district, combined with the reports of historic work undertaken, we believe the Apollo concessions present a great opportunity for Apollo Gold and we are excited to start work on the properties,” he said.
Apollo Gold (APGO) is in the grey and is trading at $1.20 per share at 12:00 pm EDT.