It has struck a deal for Trek Metals' legacy 20% stake, and has separately entered into an agreement to extinguish production payments that would be due to former owner Battery Minerals (then Metals of Africa).

 

Apollo, which had A$6.7 million cash at the start of the quarter, will buy Trek's stake in return for issuing three million shares, worth around A$240,000 based on yesterday's 8c closing price, plus a further one million 12c options expiring in June 2024.

 

It will pay Battery A$250,000 cash to extinguish a US$500,000 decision to mine payment.

 

All royalties to the two companies will also be scrapped. 

 

Apollo signed an earn-in agreement with Trek in September 2019, requiring it to spend A$4 million for 80%.

 

Apollo executive director Neil Inwood said consolidation of the province-scale Kroussou project was an important milestone that removed payment obligations and derisked the development pathway.

 

Apollo has two diamond rigs at Kroussou, where there are 18 prospects along the more than 80km of strike.

 

Argonaut Securities last year described it as potentially representing "the Earaheedy of Gabon".

 

The current focus is the Dikaki prospect. 

 

An airborne electromagnetic survey is due for completion next quarter.

 

Metallurgical tests are ongoing in Perth to develop a flow sheet.

 

The deal is expected to be completed by September and requires Apollo to seek shareholder approval for the issue of shares to Trek.

 

Trek and Battery have both quit Africa in recent years to focus on Australian opportunities.

 

Apollo shares were up 6% to 8.5c on the news.

 

Battery shares were steady at 0.9c, while Trek was untraded at 7c.