- Apollo Gold (APGO) has completed its private placement, raising a total of C$5 million to fund its work programs in Chile and Mexico
- The company issued a total of 10 million units at a price of $0.50 each, comprised of one common share and half of one common share purchase warrant
- Each whole warrant will be exercisable at a price of $0.75 per share for a period of two years from the date of issuance
- The proceeds will be used to finance payments and costs related to the company’s projects, as well as associated work programs
- Apollo Gold (APGO) is currently down 0.86 per cent and is trading at $1.15 per share
Apollo Gold (APGO) has completed its private placement, raising a total of C$5 million to fund its work programs in Chile and Mexico.
Under the terms of the financing, the company issued 10 million units at a price of $0.50 each. These units are comprised of one common share in Apollo Gold and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.75, exercisable over a period of two years from the date of issuance.
In connection with the offering, the company paid a finders’ fee to certain parties totalling $241,385 in cash and 498,470 finders’ warrants. These warrants will also be exercisable at a price of $0.75 per share for a period of two years.
Apollo Gold intends to use the proceeds to finance payments and various costs related to its projects in Chile and Mexico, including associated work programs currently scheduled for late 2020 and early 2021. A portion of the funds will also be used for working capital and general corporate purposes.
Simon Clarke, CEO of Apollo Gold, said the financing was completed at a critical time.
“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 finalise 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,” he added.
Apollo Gold (APGO) is currently down 0.86 per cent and is trading at $1.15 per share at 12:48pm EDT.