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Apollo Gold Signs Letter of Intent with First Majestic Silver for Option to Acquire Its Jalisco Group of Property Concessions in Mexico
Vancouver, British Columbia, June 23, 2020 (GLOBE NEWSWIRE) – Apollo Gold Corp. TSX.V: APGO (“Apollo” or the “Company“) is pleased to announce that it has enter
About this update from Apollo Silver Corp
[{"type":"text","content":"Vancouver, British Columbia, June 23, 2020 (GLOBE NEWSWIRE) – Apollo Gold Corp. TSX.V: APGO (“Apollo” or the “Company“) is pleased to announce that it has entered into a letter of intent with First Majestic Silver Corp. (“First Majestic”) effective June 22, 2020 (“Letter of Intent” or “LOI”). Pursuant to the LOI, Apollo has confirmed its intention to enter into a 3 year earn-in option (“the Option”) with First Majestic to acquire 100% of First Majestic’s ownership in its Jalisco Group of properties, in the state of Jalisco, Mexico (the “Transaction”). The LOI is non-binding, however it is the intention of Apollo and First Majestic to enter into a Definitive Agreement within 90 days. Under the terms of the Transaction, Apollo Gold may exercise the Option by paying a total of $750,000, as well as issuing shares to First Majestic over a 3-year period, as follows: on closing the Definitive Agreement (“Closing”), Apollo Gold will pay to First Majestic $250,000 and issue 4,289,004 shares in Apollo Gold (equivalent to 9.9% of Apollo’s issued and outstanding share capital as at the date of execution of the LOI). In addition, Apollo Gold will issue 1.5 million share purchase warrants, each warrant entitling First Majestic to acquire one share of Apollo Gold at $0.50 a share for a period of two years; on the date that is twelve (12) months after Closing, Apollo Gold will pay to First Majestic $200,000 and issue 1,000,000 shares of Apollo Gold; and on the date that is twenty-four (24) months after Closing, Apollo Gold will pay to First Majestic $300,000 and issue 1,000,000 shares of Apollo Gold. In addition, Apollo Gold will commit to exploration expenditures of at least $1,250,000 on the Jalisco Group of Properties within 36 months of Closing. First Majestic’s Jalisco Group of Properties (the “Jalisco Properties”) covers 6 properties and 15 highly prospective claims, 13 of which First Majestic owns 100% and 2 in which it has a 45% interest, in the state of Jalisco, Mexico. The claims cover 5,240 hectares in a district that has a history of gold and silver mining, including the historic Etzatlan, Ampora, La Calbaza, Piedra and Bola mines. The Jalisco Properties are adjacent to a number of properties, such as El Barqueno, El Rayo and Coyote, owned by Agnico Eagle who, together with Compania Minera Artengo (“CMA’), dominate the dis...