ENP Newswire - 25 August 2014
Release date- 22082014 - Apollo Minerals (ASX: AON) has in the last 12 months secured over $10 million in joint venture and equity financing while progressing its South Australian IOCG and African iron ore projects.
Chairman Richard Shemesian has played a key role in building shareholder value with a number of companies and looks set to repeat this with Apollo to start drilling in the two areas.
Companies which he helped transform into producers or were acquired included ASX listed Redport that was taken over by Canada'sMega Uranium for $125million in 2006 and iron ore producer Aztec Resources which was acquired by Mount Gibson Iron (ASX:MGX) for $300 million in 2007.
One of the key achievements was the company entering into a $3.4 million joint venture with the Robert Friedland-controlled High Powered Exploration Inc (HPX) to find major Iron Oxide Copper Gold deposits at the Commonwealth Hill joint venture project in South Australia's Gawler Craton. Notably, HPX has also acquired around 10% of Apollo's stock, its first investment in an ASX company after a review of over 1,000 projects worldwide.
As a result Eric Finlayson formerly Global Head of Rio Tinto Exploration has boosted the Apollo board's expertise which also includes former MD of Iron Ore Holdings Ltd (IOH) Matthew Rimes. It has also secured $4 million from major international group Zoradox Limited to fully fund exploration at the Kango North iron ore project in Gabon in return for a 50.01% interest in the project. The company has also arranged over $3 million in equity raisings this year with strong support from its major shareholders.
Apollo activity has resulted in an unprecedented level of activity in the Gawler Craton since the 1990s. This includes the largest induced polarisation survey ever conducted in South Australia of over 140 square kilometers using HPX's proprietary Typhoon' technology that identified several large-scale, high priority IOCG drill targets. HPX has also carried out test drilling at Commonwealth Hill while rotary air blast drilling and gravity surveys have been completed in the separate Mars Aurora Tank and Eaglehawk joint venture areas.
Field work has also commenced at Kango North.
The Road Ahead
With funding in place and previous exploration work and multiple targets identified at the SA copper/gold projects, Apollo has built the foundation for further activity in its IOCG-focused play in South Australia and the Kango North Iron Project in Gabon. The company is about to commence gold-copper drilling at the Mars Aurora Tank JV project, which has similarities in size and style to the nearby Prominent Hill IOCG deposit about 110 kilometres to the east.
Apollo also intends to carry out drilling of major targets at the Bundi South prospect within the EagleHawk JV where Apollo is earning a 75% interest from nickel producer Mincor. HPX is continuing work on review of the large recent Typhoon IP survey at the Commonwealth Hill JV area. In West Africa, Apollo is preparing to start an initial $750,000 drill program to delineate a major exploration target and DSO iron at the Kango North project. Positive results from this iron ore drilling would be a bonus to shareholders.
The upcoming drilling on two projects in Australia and another in West Africa will unlock the potential of Apollo Mineral's IOCG assets in South Australia and the Kango North Iron Project in Gabon. In addition, its joint venture with Robert Friedland's HPX for Commonwealth Hill provides not only a partner with technical know-how, but also the financial muscle to exploit the next Prominent Hill or Carrapateena or even Olympic Dam.
Share price catalysts ahead include:
Mars Aurora Tank drilling results;
HPX review of the recent Typhoon IP survey and
Kango North drilling results.
In short, success with any of these programs will make Apollo's market cap of circa $11.3 million look decidedly low moving forward.
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Apollo Minerals Limited
Suite 1503B, Level 15
Gold Fields House, 1 Alfred Street
Sydney, NSW, 2000
Tel: +61 2 9078 7665
Fax: +61 2 9078 7661