Apollo Gold Closes $5 Million Private Placement

VANCOUVER, British Columbia, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Apollo Gold Corp. TSX.V: APGO (“Apollo” or the "Company") is pleased to announce that, further to its news release dated June 23, 2020, it has closed a non-brokered private placement of 10,000,000 units of the Company (the “Units”) at $0.50 per Unit for gross proceeds of $5,000,000 (the “Offering”).

Each Unit consists of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to purchase one additional common share in the capital of the Company (a “Warrant Share”) at a price of $0.75 per Warrant Share for a period of two years from the date of issuance of the Warrants.

All securities issued in connection with the Offering are subject to a statutory hold period ending on December 5, 2020 in accordance with the policies of TSX Venture Exchange and applicable securities legislation. The Company paid aggregate cash finders' fees totalling $241,385 and issued 498,470 finders’ warrants to certain eligible finders. Each finder’s warrant entitles the holder to purchase one Share at an exercise price of $0.75 per Share for a period of two years from the date of issuance of the finders’ warrants.

Andrew Bowering, Director and Chairman of the Company participated in the private placement and acquired 80,000 Units. The purchase constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as it was a distribution of securities for cash and the fair market value of the Units issued to or the consideration paid by such insider did not exceed 25% of the Company’s market capitalization.

The Company did not file a material change report more than 21 days before the expected closing of the offering because the details of the participation therein by the related party of the Company were not settled until shortly prior to the closing of the offering and the Company wished to close on an expedited basis for business reasons.

The Company intends to use the net proceeds of the Offering to finance payments and costs related to its projects in Chile and Mexico, including the associated work programs currently anticipated for Q4 2020 / Q1 2021 in both jurisdictions. Net proceeds of the financing will also be used for working capital and general corporate purposes.