Apollo Gold signs binding letters of intent to acquire options over highly prospective gold properties in Peru

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[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Apollo Gold Corp. TSX.V: APGO (“Apollo” or the \"Company\") is pleased to announce that it has entered into binding letters of intent (the “LOIs”) with Conico Resources Ltd. to acquire its interest in an option to acquire the Muylaque Project (“Muylaque”) and Condoro Explorations Inc. to acquire its interest in an option to acquire the Lucma and Libertador Projects (“Libertador”). Muylaque is comprised of two mining concessions totaling 800 hectares located in the District of San Cristóbal, Province of Mariscal Nieto, Department of Moquegua, Peru, and Libertador is comprised of seven mining concessions totaling 4,357 hectares located in the Lucma district, Gran Chimú province, La Libertad Department, Peru. The LOIs are binding as to their principal terms, but the transactions remain subject to the execution of definitive agreements and the closing conditions contained therein and as described below. The LOIs will terminate if definitive transaction documentation is not executed by January 31, 2021 with the parties intending to execute such documentation as quickly as possible and well in advance of such date. Muylaque Transaction To acquire a 100% interest in Muylaque, Apollo Gold will make total cash payments of US$3.6 million over a 6-year period and will commit to exploration expenditures of at least US$8,000,000 within 6 years of the date hereof. In addition, Apollo will issue a total of 4 million Apollo Gold shares and 4 million share purchase warrants, as follows: TIMING MUYLAQUE   CashPayments Share Issuances Warrant Issuances ExplorationExpenditures On Closing - 1,000,000 2,000,0001   By end of Year 1 US$200,000 1,000,000 2,000,0002 US$8,000,000 By end of Year 2 US$250,000 1,000,000 - By end of Year 3 US$500,000 1,000,000 - By end of Year 4 US$750,000 - -   By end of Year 5 US$900,000 - - By end of Year 6 US$1,000,000 - - 1. Warrants issued on closing will have a term of three years and an exercise price of $0.81. 2. Warrants issued on the first anniversary of closing will have a term of three years and will have an exercise price equivalent to the closing price of Apollo Gold Shares on the last trading day prior to the date which is one year from the closing date. Upon completion by Apollo of all the minimum expenditure requirements, cash pay...

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