PERTH (miningweekly.com) – The shareholders of junior Apollo Minerals have approved a strategic alliance with High Power Exploration (HPX) to explore for base metals at a new iron-ore/copper gold frontier, in South Australia.
At an extraordinary general meeting, Apollo shareholders approved the issue of 50-million shares, at 2c a share, to raise A$1-million, which would give HPX a 10.13% interest in the junior explorer.
HPX was also given the option to increase its shareholding in the company to 19.99%, through the issue of a further 60.8-million shares, at a price of 2.4c a share.
Further milestones in the strategic alliance would involve a two-phase A$3.4-million farm-in to earn up to an 80% interest in certain of Apollo’s South Australian tenements. Up to A$1.25-million of the placement money would be applied towards the farm-in expenditure.
Following the farm-in, the two parties would establish the Commonwealth Hill joint venture (JV).
Apollo said on Tuesday that its agreement with HPX would not affect any of its other JV agreements, including its right to earn a 75% interest in the Eagle Hawk JV and the Mars Aurora-Tank JV.
With the strategic alliance now approved, Eric Finlayson will be appointed to the Apollo board as a representative for HPX.