Apollo Minerals has raised $6.5 million through a share placement to advance its Couflens High Grade Tungsten Gold Project in southern France, backed strongly by existing investors and company directors.
- Successful $6.5 million capital raising via share placement
- Strong support from existing shareholders and directors
- Funds targeted at advancing Couflens tungsten-gold exploration and development
- Placement shares priced at a slight discount to last close but premium to recent VWAP
- Shareholder approval pending for director and officer participation tranche
Capital Raising to Fuel Exploration
Apollo Minerals Limited (ASX, AON) has announced a successful capital raising effort, securing approximately A$6.5 million through the issuance of new shares. This funding round is designed to accelerate exploration and development activities at the company’s Couflens High Grade Tungsten Gold Project located in southern France.
The placement attracted significant backing from existing investors, reaffirming confidence in Apollo’s strategy and the potential of the Couflens project. Directors and officers have also committed to participate in the raising, subject to shareholder approval, signalling strong internal belief in the project’s prospects.
Project Highlights and Historical Context
Couflens is notable for encompassing the historic Salau mine, once one of the world’s highest-grade tungsten producers during its operation from 1971 to 1986. Beyond tungsten, the project area shows promising gold mineralisation, with surface rock chips containing up to 24.5 grams per tonne of gold and confirmed gold presence down to 600 metres depth. This dual commodity potential positions Couflens as a compelling exploration target with significant scale opportunity.
Placement Details and Pricing
The placement will be executed in two tranches, the first tranche involves the issue of approximately 213 million new shares scheduled for early February, while the second tranche, involving around 29 million shares to directors and officers, awaits shareholder approval expected in mid-March. The shares are priced at $0.027 each, representing a 10% discount to the last closing price but a premium to the recent volume-weighted average prices, reflecting a balanced approach to pricing that rewards existing shareholders while attracting new capital.
Strategic Implications and Outlook
Managing Director Neil Inwood expressed satisfaction with the strong market response, highlighting that the strengthened balance sheet provides a solid platform to unlock Couflens’ untapped regional exploration potential. The funds will primarily support ongoing exploration and development efforts, as well as general working capital needs, positioning Apollo Minerals to advance its project towards potential production milestones.
While the capital raising marks a significant step forward, the company’s progress will depend on continued exploration success and shareholder support for director participation in the placement. The coming months will be critical as Apollo seeks to translate this financial momentum into tangible project advancement.
Bottom Line?
Apollo Minerals’ fresh capital injection sets the stage for a pivotal exploration phase at Couflens, with investor confidence and project potential both on the rise.
Questions in the middle?
- Will shareholder approval for director and officer share participation be secured smoothly?
- How will exploration results over the next six months influence project valuation and development timelines?
- What are the company’s plans for further capital raising if exploration success demands accelerated development?