Apollo Consolidated Ltd (ASX:AOP)

Apollo agrees terms for US$4.5m divestment of Northern Cote d'Ivoire Projects

Highlights

What's happened?

Apollo Consolidated Limited (ASX: AOP, “Apollo”) has agreed conditional terms for the proposed sale of its 20% interests in Exore Resources Ltd’s (ASX:ERX) Bagoe and Liberty projects in northern Cote d’Ivoire to Ibaera Capital Fund LP.

What are the key highlights?

Outright conditional sale of 20% interests in Bagoe and Liberty gold projects for US$4.5M cash.
Funds on completion will supplement March quarter cash reserves of A$16.6M and will allow accelerated drilling and development studies to occur at flagship Lake Rebecca Gold Project in Western Australia.
Apollo's royalty over the advanced Seguela gold property in central Cote d’Ivoire is not part of sale and is retained by Apollo.
The sale is subject to Exore (ASX:ERX) not exercising its pre-emptive rights under the terms of the existing joint venture agreement or waiving those rights during a 30-day pre-emption period.

Managing Director's Summary

“We consider this an attractive opportunity to realise the somewhat hidden value of this asset. Our previous decisions to focus on building value at Rebecca have been supported by strong subsequent results, and in our view this represents an attractive premium relative to the value of the interests inferred from recent ERX share price trading values. We welcome the additional non-dilutionary funding that, on completion, would bring our cash position to well over A$20M. Importantly we still retain the valuable 1.2% royalty over the advanced Seguela project in central Cote d’Ivoire, which is the subject of a recently announced Preliminary Economic Assessment on its 1Moz Mineral Resource by owner and operator Roxgold Inc (TSX: ROXG).”

Nick Castleden

Managing Director, Apollo Consolidated Ltd

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