Apollo Minerals has raised $7.2 million to fuel exploration and studies at the flagship zinc and lead ‘Kroussou’ project. The placement was supported by Sprott, a leading North American-based asset management firm with a track record of identifying and funding successful early-stage resource projects.

AON offered 90 million new ordinary shares at an issue price of A$0.08 to raise $7.2 million under the placement.

Sprott’s decision to support Apollo Minerals (ASX:AON) demonstrates the significance of the zinc and lead discoveries evolving at the Kroussou Project in Gabon, the explorer says.

Apollo Minerals’ Executive Director, Mr Neil Inwood, commented:

We are extremely pleased to have secured strategic support from Sprott and to welcome new high calibre investors as fellow shareholders of Apollo Minerals. We are excited by the opportunity to build international recognition of Kroussou’s significance and look forward to working with Sprott and others to build value for shareholders.”

AON’s completion of a highly successful Phase 1 drilling program has confirmed the massive scale potential of Kroussou.

The Dikaki prospect — one of 18 at Kroussou, over more than 80km of strike, — continues to grow with hits like 32m at 3.1% zinc and lead from 4m (including 13.5m at 5.3% zinc and lead from 12.8m).

The average depth to mineralisation at Dikaki has been less than 10m, indicating potential for simple open pit mining extraction, the company says.

“Dikaki is looking like a major project all on its own, with more than 8km of strike and an average channel width of 420m,” Apollo says.

“The potential for similar Dikaki style mineralisation discoveries at other prospects at Kroussou is extremely exciting.”

Caption: Kroussou Project Showing 18 Key Prospects over more than 80km of prospective strike length.

Like Rumble’s Earaheedy discovery, but possibly bigger

Sprott compares Apollo’s zinc and lead discoveries in Gabon to base metal exploration success by Rumble Resources (ASX:RTR) and Strickland Metals (ASX:STK). Both companies have re-rated in 2021 after announcing discoveries in the Earaheedy Basin in WA.

While AON’s current market cap is dwarfed by Rumble and Strickland, early indications from Kroussou suggest the project has both the scale and quality to more than match its Australian counterparts.

Kroussou contains sulphides from surface, indicating possible metallurgical advantages when compared to processing oxidised zinc and lead.

In a research note sent to clients, Sprott analyst Brock Salier described Kroussou as an “emerging world class base metals complex,” and based on his comparison of Kroussou against Rumble, Salier stated that AON “could be the start of something massive, so worthy of a look”.

Supply concerns over zinc have pushed zinc prices to ten year highs. The metal is gaining more attention with potential uses in emerging battery technologies and related speculation that Zinc will be an addition to the US Critical Minerals List.




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.