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Additional Information
Market: TSX
Sector: Gold Mining
Epic: TSX:APG
News: Latest news
Web Site: Apollo Gold
Other Articles: 09-03-201005-10-200928-07-2009 
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Thursday July 29, 09:30Specialist Energy Group Lays Out a Compelling Blueprint for Growth

After a difficult start to life as a stock market listed company, the company now stands at the threshold of a much brighter future. Legacy issues have been dealt with and the turnaround programme initiated by CEO Ewan Lloyd-Baker is gaining traction.

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Wednesday July 28, 11:30Silver Lake Resources boosts high grade gold resource by 70% to 2.5m ounces

Silver Lake Resources has added over 1 million ounces of gold to its resource inventory during the year after mining 66,700 ounces and expects further encouraging results at its  Mount Monger and Murchison projects.

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Thursday July 15, 02:10Henan Yuguang Lead & Gold investment in Kimberley Metals receives all clear from FIRB

Kimberley Metals (ASX: KBL) has reported that on 12 July the Australian Government Foreign Investment Review Board (FIRB) had no objections to Henan Yuguang Lead & Gold Co. Ltd's [...]

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Apollo Gold

Apollo Gold

Apollo Gold is involved in the acquisition, exploration and development of gold deposits; ranging from initial metals exploration to gold producing operations. The Company is currently engaged consecutively in all 3 phases of gold mining.

Apollo Gold's objectives are to commence mining at the Black Fox Mine, drilling and road construction at the Huizopa Project, and to continue profitable production at the Montana Tunnels Mine. 
Tuesday, March 09, 2010

Apollo Gold taps into Linear Gold’s cash pile

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Apollo Gold (TSX: APG, AMEX:AGT) and Linear Gold (TSX:LRR), two junior gold companies, have agreed to merge their respective businesses to create a new mid-tier gold player listed in Toronto and New York.

Apollo Gold is offering 5.474 shares for each Linear Gold share, which implies a price of CDN$2.30 per share for Linear Gold – a 20% premium to Linear’s 20 day volume weighted average share price.  The all share merger values Linear Gold at CDN$102 million.

Post merger Apollo Gold shareholders will own approximately 52.2% of the combined entity based on the current number of shares outstanding, or 57.1% on a fully diluted basis.

As part of the merger agreement, which has been approved by both companies board of directors, Linear Gold will purchase by way of a private placement 62.5 million shares in Apollo Gold at a price of 40 cents per share for gross proceeds of CDN$25 million. Apollo's project debt lenders have agreed, subject to a number of terms and conditions, to a standstill until September 30, 2010 in the event of certain events of default.

"This is an exciting time for the shareholders of both Apollo and Linear as we take a very important step towards building one of Canada's premier mid-tier gold producers. The successful completion of this Merger will position the combined company to deliver both near and long-term value to its shareholders through existing production growth as well as significant development and exploration upside across a diverse portfolio of precious metal properties,” David Russell, President and CEO of Apollo, commented.

The combined company will own the Black Fox Mine in Ontario, which is projected to produce 100,000 ounces of gold in 2010, and will control the Goldfields project in Saskatchewan which is expected to enter production in 2013 at a rate of 70,000 ounces per annum.  Total combined reserves of the new company will be 2.3 million ounces of gold, all in Canada, with additional exploration projects in Mexico, Canada and the Dominion Republic.

For Apollo Gold, the main attraction of the merger is Linear Gold’s strong cash pile. US$10 million of the proceeds from the Linear Gold share placing will be used to repay part of its US$70 million project facility for the Black Fox Project. On completion of the merger, a further US$10 million paid towards the project facility, cutting the principal to US$50 million. Apollo Gold further stated that it intended to cut the principle to US$35 million by the end of 2010.

David Russell, President & CEO of Apollo Gold will continue to act in his current role in the new company, while Wade Dawe, President & CEO of Linear Gold, will assume the role of Chairman.

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