Apollo Minerals secures 100% ownership of the Kroussou Zinc-Lead Project in Gabon

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Apollo Minerals secures 100% ownership of the Kroussou Zinc-Lead Project in Gabon

Apollo Minerals Ltd (ASX:AON) has reached a strategically important milestone after securing 100% ownership of the Kroussou Zinc-Lead Project in Gabon, central Africa, via agreements with Trek Metals Ltd (ASX:TKM) and Battery Minerals Ltd.

The agreement will see Trek become a shareholder of Apollo Minerals. Two diamond rigs are currently active at Kroussou with results expected in due course.  In addition to the current active drill program, planning has commenced for an airborne electromagnetic (AEM) survey, which is scheduled to be completed during the June quarter. Apollo Minerals executive director Neil Inwood who made the announcement said securing the full ownership is an outstanding outcome for Apollo Minerals and represents a strategically important milestone.

“We welcome Trek as a shareholder of Apollo Minerals. Our exploration success at Kroussou has been built on sound geological work by their team and we appreciate their confidence in converting their minority project interest into a direct shareholding interest in Apollo Minerals.

“The acquisition of the minority ownership interests and the removal of all future vendor royalty and payment obligations underlines the company’s belief in the future potential of Kroussou and de-risks the development pathway. The transaction is considered a strong value driver for Apollo Minerals given the exciting discoveries made at Kroussou and our excellent ongoing results,” said the executive director.

Earn-in-agreement

Commenting on the agreement, Trek CEO Derek Marshall said: “This agreement with Apollo Minerals is structured in a way that converts our minority project exposure into a direct equity interest in Apollo, giving us exposure to the future upside of Apollo’s activities. This will allow us to crystallise value from our remaining interest in the Kroussou Project and is consistent with our strategic focus as an explorer-developer in the Pilbara region of WA.”

Apollo Minerals previously entered into an earn-in-agreement with Trek in September 2019 under which the Company has earned an 80% interest in Kroussou. The commercial terms of the earn-in agreement required Apollo Minerals to spend a total of $4 million to earn the 80% interest, following which, both Trek and Apollo Minerals were required to contribute to expenditure on a pro-rata basis to maintain their respective interest in the Project.

The terms also included various other rights and obligations including the requirement for Apollo Minerals to assume Trek’s obligation to make a payment of US$500,000 to Battery Minerals, the previous owner of the Project, upon any decision to mine.

The conditions precedent to the agreement included receiving a valid mining convention and any other approvals required from the Gabon Government relating to Apollo Minerals assuming control of the Project. All conditions precedents were met in May 2020 with the Gabon Government awarding Apollo Minerals a Mining Convention and approving the change of control of the Project.

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