Gold explorer Apollo Consolidated has struck an agreement with Ibaera Capital Fund to divest of its 20% interest in the Bagoe and Liberty projects, in Cote d’Ivoire, for A$4.5-million.
The sales agreement was subject to fellow-listed Exore resoures not exercising its pre-emptive rights under the terms of existing joint venture agreements over the two project areas, or waiving those rights during a 30-day pre-emption period.
Apollo previoiusly sold 80% of its three northern tenements in Cote d’Ivoire to Exore Resources in exchange for 90-million shares in the ASX-listed company, and a 20% free carry to decision to mine. In April last year, Apollo completed an in-specie distribution of the Exore shares to its own shareholders.
“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 interest inferred from recent Exore Resources share price trading values,” said Apollo MD Nick Castleden.
“We welcome the non-dilutionary fund that, on completion would bring our cash position to well over A$20-million.”
Castleden noted that Apollo would still retain a 1.2% royalty over the advanced Seguela project, where TSX-listed Roxgold Inc has announced a preliminary economic assessment on the one-million ounce mineral resource.
