Apollo Minerals (ASX:AON) eyes $7.2m financing to fund exploration at Kroussou

• Apollo Minerals (AON) eyes a $7.2 million capital raise via an institutional placement
• The company has received firm commitments for the raise and will issue 90 million new ordinary shares at 0.8 cents each to investors
• Apollo will use the proceeds to accelerate exploration at the Kroussou Project in Gabon and for general working capital
• Shares in the company are up 11.1 per cent to 10 cents each

Apollo Minerals (AON) stands to raise $7.2 million in additional capital after receiving firm commitments for an institutional placement.

The financing will see Apollo issue 90 million new ordinary shares to institutional and high-net worth investors at 0.8 cents each.

In a statement today, Apollo said the placement had been supported by Sprott Capital Partners LP, which also acted as the company’s financial advisor for the raise.

Based in the United States, Sprott is an asset management firm which, according to Apollo, has a proven track record of identifying and funding successful early-stage resource projects.

Importantly, Apollo said Sprott’s support was indicative of the significant zinc and lead discoveries evolving at the company’s Kroussou Project in Gabon, where proceeds from the raise will be used to fund expanded exploration programs and technical studies.

Apollo Minerals’ executive director Neil Inwood said the company welcomed Sprott’s involvement and the intake of new high-calibre investors as fellow shareholders.

“The placement will enable the company to accelerate exploration activities and advance our plans to unlock the exceptional scale and quality potential we are discovering at Kroussou,” Mr Inwood said.

“We are excited by the opportunity to build international recognition of Kroussou’s significance and look forward to working with Sprott and others to build value for shareholders.”

As part of the placement, Apollo will issue roughly 4.8 million placement options to Sprott and other advisors to the placement, exercisable at 12 cents until June 30, 2023.

In other news, the company said it has completed its 2021 diamond drilling program at Kroussou with assay results still pending.

According Apollo, the results returned from the project continue to support the potential for a large-scale, shallow, flat-lying and broadly mineralised system with continuity across multiple zones.

Shares in the company were trading 11.1 per cent higher at 10 cents each at 2:39 pm AEDT.