Apollo nabs 100% ownership of Gabon Krossou Zinc-Lead Project
Apollo says securing 100% ownership of the Krossou Zinc-Lead Project in Gabon is a thrilling, strategically important milestone.
Apollo Minerals has secured 100% ownership of the Krossou Zinc-Lead project in Gabon via agreements with Trek Metals (ASX:TKM) and Battery Minerals (ASX:BAT), in a move it says will de-risk the development pathway and unlocks its future potential.
Under the terms of the share sale deed entered into between Apollo, Trek and their relevant subsidiaries, AON will acquire all of the shares in Select Exploration, the wholly owned subsidiary of Trek which indirectly holds ownership of Kroussou.
A general meeting will be held to approve the issue of the consideration securities to Trek and a notice of meeting will be sent to shareholders in due course with the general meeting expected to be held in May 2022.
Apollo Minerals (ASX:AON) executive director Neil Inwood said securing 100% ownership is an outstanding outcome for Apollo.
“We welcome Trek as a shareholder of Apollo Minerals – our exploration success at Kroussou has been built on sound geological work by their team and we appreciate their confidence in converting their minority project interest into a direct shareholding interest in Apollo Minerals.”
Inwood added the acquisition of the minority ownership interests and the removal of all future vendor royalty and payment obligations underlines Apollo’s belief in the future potential of Kroussou and de-risks the development pathway.
“The transaction is considered a strong value driver for Apollo Minerals given the exciting discoveries made at Kroussou and our excellent ongoing results,” he said.
The Deed of Termination and Release signed with Trek and Battery Metals will release AON from various vendor obligations under the Earn-in Agreement, which includes the future payment of US$500,000 to Battery Metals upon any future decision to Mine.
It also includes the potential for Trek and Battery Metals to share in a 1% Net Smelter Royalty over any future production.
Two diamond rigs are currently active at Kroussou with results expected in due course at Dikaki.
Dikaki is one of 18 prospects identified along the more than 80km of strike length of prospective geology at Kroussou.
Planning for an airborne electromagnetic (AEM) survey has also kicked off, which is scheduled to be completed during the June quarter.
The data will allow Apollo to test the entire 80km strike length of prospective geology at Kroussou and potentially highlight further shallow high-grade mineralisation similar to Dikaki and Niamabimbou at other identified prospects.
This article was developed in collaboration with Apollo Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.