Printer Friendly
The Free Library
19,595,263 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

Apollo Gold Signs Agreement With Jipangu Inc. for the Sale of Nevada Mining Subsidiaries.


DENVER -- Apollo Gold Corporation ("Apollo" or the "Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002)
TSX Transfer from Stack Pointer to Index
TSX True Space Extension
:APG APG Assists Per Game (basketball)
APG Assists Per Game (hockey statistic)
APG Aberdeen Proving Ground
APG Automated Password Generator
APG Asia Pacific Group on Money Laundering
) (AMEX AMEX

See: American Stock Exchange
:AGT AGT antiglobulin test. ) is pleased to announce it entered into a stock purchase agreement with Jipangu Inc. ("Jipangu") on October 17, 2005, pursuant to which a wholly-owned subsidiary of Jipangu has agreed to purchase Florida Canyon Mining, Inc., Standard Gold Mining, Inc., and Apollo Gold Exploration Inc. for US$14 million (the "Mine Purchase"), subject to certain conditions. In addition, Apollo and Jipangu have entered into a subscription agreement for a US$3.5 million private placement under which Jipangu would purchase up to 11,650,000 units of Apollo priced at Cdn$0.35 per unit, with each unit consisting of one common share of Apollo and 0.17167 of a warrant (for a total of up to 2,000,000 warrants), with each whole warrant exercisable for two years at Cdn$0.39 for one common share. If the private placement were completed and the warrants were exercised, Jipangu would own in the aggregate 19.7% of Apollo's common shares based on 106,556,449 common shares outstanding as of October 17, 2005.

The stock purchase agreement contemplates that the Mine Purchase will close on November 15, 2005. If the Mine Purchase does not close by December 1, 2005, either Apollo or Jipangu may terminate the agreement, provided that the terminating party has not breached the agreement in a manner that has prevented the closing. The US$3.5 million private placement is conditional upon the completion of the Mine Purchase, and would not close until the 61st day after the closing of the Mine Purchase.

Also, on October 17, 2005, pursuant to the stock purchase agreement, Jipangu advanced Apollo US$2.5 million and Apollo issued Jipangu a US$2.5 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt.  due June 1, 2006. The note is non-interest bearing through December 1, 2005, after which the note will bear interest at 7.3% per annum Per annum

Yearly.
. At the closing of the Mine Purchase, the US$2.5 million advance would be credited toward the US$14 million purchase price in full satisfaction of the indebtedness evidenced by the note.

If the Mine Purchase is not completed and the stock purchase agreement is terminated by Apollo due to Jipangu's failure to meet its obligations under the agreement, Apollo would have the right, but not the obligation, to apply the US$2.5 million advance to the subscription price for units of Apollo in connection with the private placement described above. If Apollo were to exercise this right, Jipangu would have the right, but not the obligation, to increase the total amount of its private placement investment to US$3.5 million. If the Mine Purchase is not completed and the stock purchase agreement is terminated for any other reason, Jipangu would have the right, but not the obligation, to apply the US$2.5 million advance to the private placement subscription price for units of Apollo. If Jipangu were to exercise this right, Jipangu would also have the right, but not the obligation, to increase the total amount of its private placement investment to US$3.5 million.

Apollo expects to use approximately US$10.7 million of the proceeds from the Mine Purchase to secure its convertible debentures, currently secured by the Nevada subsidiaries and their assets, with the balance and the proceeds from the private placement to be used to supplement the funding of Apollo's general and administrative expenses, development of Black Fox, Montana Tunnels, exploration at Huizopa, and other general corporate purposes.

Mr. R. David Russell David Russell may refer to:
  • David Abel Russell (1780-1861), U.S. Representative from New York
  • David Allen Russell (1820-1864), United States Army officer
  • David J Russell (born 1954), English golfer
, Apollo's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated "We are pleased with the signing of the agreements with Jipangu. The Black Fox project remains our vision for the future and we want to concentrate on Black Fox. The Black Fox drilling program continues to exceed our expectations with high grade gold intercepts as well as a continued demonstration of continuity."

The Black Fox Project is located along the Destor-Porcupine fault system within the Abitibi Greenstone Belt The Abitibi greenstone belt is a 2,800-2,600 million year old greenstone belt that spans across the Ontario-Quebec border in Canada. It is mostly made of volcanic rocks, but also includes ultramafic rocks, mafic intrusions, granitoid rocks, and early and middle Precambrian , a world-class mining district that has yielded over 75 million ounces of cumulative gold production from renowned mines such as the Dome, Hoyle Pond, Hollinger, Holt McDermott and Harker Holloway. Black Fox was acquired by Apollo in late 2002 during a period of depressed metal prices as part of a strategic plan for the Company to explore and develop high-grade gold assets to replace its older and lower-grade producing properties. Current exploration plans also include continued surface drilling and underground drilling of the main mineralized min·er·al·ize  
v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es

v.tr.
1. To convert to a mineral substance; petrify.

2. To transform a metal into a mineral by oxidation.

3.
 zone as well as the base metal zone at Black Fox, where high-grade silver, lead, and zinc mineralization Mineralization
The process by which the body uses minerals to build bone structure.

Mentioned in: Rickets

mineralization,
n the bioprecipitation of an inorganic substance.
 co-exist with high-grade gold.

Apollo Gold Corporation

Apollo Gold is a gold mining company with operating mines in Montana and Nevada, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project an early stage exploration project in the Sierra Madre Sierra Madre, city, United States
Sierra Madre (sēĕr`ə mä`drā), residential city (1990 pop. 10,762), Los Angeles co., S Calif., at the foot of Mt. Wilson; inc. 1907. There is some light manufacturing.
 Gold Belt in Chihuahua, Mexico.

Jipangu Inc.

Jipangu is a Tokyo-based company that historically has specialized in gold investments. This transaction represents the first phase of Jipangu's strategy to become a gold mining company.

Wellington West Capital Markets is acting as financial adviser to Jipangu in connection with the Mine Purchase and private placement.

FORWARD-LOOKING STATEMENTS

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  Securities Exchange Act of 1934, as amended. All statements regarding the stock purchase agreement, private placement, use of proceeds, and the anticipated closing dates are forward-looking statements that involve various risks and uncertainties. There can be no assurance that the stock purchase transaction or the private placement will be completed or that the transactions will close on the dates anticipated. Important factors that could cause actual results to differ materially from these forward-looking statements include: the failure to close the transactions contemplated by the stock purchase agreement and the subscription agreement, and other factors disclosed under the heading "Risk Factors" and elsewhere in Apollo documents filed from time to time with the Toronto Stock Exchange Toronto Stock Exchange (TSE)

Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options.
, The American Stock Exchange American Stock Exchange (AMEX)

Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921.
, The United States Securities and Exchange Commission and other regulatory authorities.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CANA
Date:Oct 19, 2005
Words:1016
Previous Article:Pacer International to Present at Stephens Logistics and Transportation Investors' Conference on Nov. 2; Audio Webcast Will Be Available.
Next Article:Icagen Reports Results of Phase II Open Label Extension Study of ICA-17043 for the Treatment of Sickle Cell Anemia.
Topics:



Related Articles
IN BRIEF : PINKERTON'S INC.
Toquima Signs Nevada Joint Venture with Newmont.
Romarco and Western Goldfields Progress Merger Focus on Feasibility Study at Mesquite.
Haber Inc. and Gold City, Inc. Enter $10 Million Joint Funding Venture; Agreement Will Expedite Expansion of Operations, Acquisitions.
Apollo Gold Temporarily Suspends Mining at Montana Tunnels.
RSM Options Land Package Adjoining Its Goldwedge Mine.
Apollo Gold Closes the Sale of Its Nevada Mining Subsidiaries To Jipangu, Inc.
Ascendant Copper Corporation Names Chief Financial Officer.
HuntMountain Resources Signs Letter of Intent to Acquire Nevada Gold Project.
Piedmont Mining Signs Agreement With Miranda on PPM Gold Project, Nevada.

Terms of use | Copyright © 2012 Farlex, Inc. | Feedback | For webmasters | Submit articles