Apollo Minerals Raises $2 Million to Accelerate Salanie Gold Exploration
Apollo Minerals has successfully raised $2 million through a shortfall offer, anchored by a strategic investment from Capital DI Limited, positioning the company to accelerate exploration at its Salanie Gold Project in Gabon.
- Raised approximately $2 million via shortfall offer
- Capital DI Limited committed $1.45 million as strategic cornerstone investor
- Capital DI gains right to appoint a non-executive director with 10% voting power
- Funds to accelerate drilling and exploration at Salanie Gold Project, Gabon
- Alpine Capital acted as lead manager, earning a 6% placement fee
Strategic Capital Injection Strengthens Apollo Minerals
Apollo Minerals Limited (ASX: AON) has announced a successful capital raising effort, securing commitments to issue over 143 million shares and raise approximately $2 million. The shortfall offer, which closed recently, was notably cornerstoned by Capital DI Limited and its key supporters, who committed around $1.45 million. This strategic investment underscores growing confidence in Apollo’s Salanie Gold Project in Gabon, where Capital DI has already commenced drilling activities.
Implications for Salanie Gold Project
The infusion of funds places Apollo Minerals in a robust financial position to accelerate exploration efforts at Salanie, a project that is increasingly viewed as a promising high-grade gold system. The company’s Managing Director, Neil Inwood, expressed enthusiasm about the partnership, highlighting the potential for significant discoveries in a minimally tested region. The fresh capital will facilitate more aggressive drilling campaigns and target testing, potentially unlocking value for shareholders.
Governance and Strategic Partnership
As part of the arrangement, Capital DI Limited will have the right to appoint a non-executive director to Apollo’s board, contingent on maintaining at least 10% voting power. This move signals a deeper strategic alignment and suggests that Capital DI intends to play an active role in guiding the company’s exploration strategy and corporate governance. Alpine Capital Pty Ltd acted as lead manager for a portion of the shortfall offer, earning a 6% fee on placements they secured.
Looking Ahead
The planned issuance of the shortfall shares is expected around 12 February 2025, marking a new phase for Apollo Minerals as it pushes forward with exploration. Investors will be keenly watching the results from the ongoing drilling programs at Salanie, which could validate the strategic investment and potentially catalyse further interest in the stock. The partnership with Capital DI also adds a layer of credibility and resource backing that could prove pivotal in the company’s growth trajectory.
Bottom Line?
Apollo Minerals’ strategic capital raise sets the stage for accelerated exploration, but the market will await drilling results to confirm Salanie’s potential.
Questions in the middle?
- What early results will Capital DI’s drilling at Salanie reveal about the gold system’s grade and extent?
- How will the new non-executive director influence Apollo Minerals’ strategic direction and governance?
- Could this capital raise trigger further institutional interest or partnerships for Apollo Minerals?
