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APOLLO MINERALS LIMITED — Capital/Financing Update 2012
May 7, 2012
64395_rns_2012-05-07_2954e179-05bb-435c-9c2b-36aa8f8cc62f.pdf
Capital/Financing Update
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8 May 2012
ASX ANNOUNCEMENT
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ASX Code: AON
ABOUT APOLLO MINERALS
Apollo Minerals is an iron ore explorer and developer with two key projects in the Australian iron ore provinces of the Pilbara (Western Australia) and Gawler Craton (South Australia). Apollo’s South Australian tenements are also highly prospective for base and precious metals.
Apollo’s projects are well situated close to existing infrastructure including railways, ports and power.
| Capital Profile | |
|---|---|
| Shares on issue | 220.7m |
| Options on issue | 60.5m |
| Market Cap | $12m |
Iron Ore Projects Commonwealth Hill South Australia Mount Oscar Western Australia
Base and Precious Metals Project
Jindal Steel and Power to invest in Apollo Minerals
HIGHLIGHTS
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Jindal Steel and Power Ltd take 9.25% stake in Apollo Minerals
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Discussions to continue regarding project development
Apollo Minerals Limited (ASX: AON) (“Apollo" or the “Company”) is pleased to announce that it has signed a share subscription agreement (the "Subscription Agreement") dated May 4, 2012 with Jindal Steel and Power Australia Pty Ltd, a wholly-owned subsidiary of Jindal Steel and Power Limited (“JSPL”), a leading player in India’s steel, power, mining, oil and gas and infrastructure industries. JSPL is the third largest steel producer in India.
JSPL is making a significant investment in Apollo. This initial investment, facilitated by Bligh Capital Pty Ltd, will provide JSPL with 9.25% of the total issued shares in Apollo.
The proceeds of JSPL’s initial investment in Apollo will be used for the exploration and development of Apollo’s Commonwealth Hill Iron Project (“CHIP”) as the Company continues to work on fasttracking the asset into production.
Titan South Australia
Apollo Minerals Limited ABN 96 125 222 924 50 Margaret Street Sydney NSW 2000 T: +61 2 9078 7670 F: +61 2 9078 7661 E: [email protected]
Contact
Dominic Tisdell Apollo Minerals Ltd T: +61 2 9078 7660
Apollo Minerals Chief Operating Officer, Dominic Tisdell said “ Apollo is delighted to welcome India’s Jindal Steel and Power as a substantial shareholder. India is an emerging economic superpower with significant expertise in mining and steel making and a strong desire to secure the natural resources it needs for its continued economic development. Since we gained access to the Commonwealth Hill Iron project in October 2011, Apollo has added value to the project through exploration and is now adding more value by attracting an investor of the size and quality of JSPL. The involvement of JSPL underlines our determination in fast-tracking Commonwealth Hill towards production .”
Tony Dawe Investor Relations T: +61 8 9388 0944 www.apollominerals.com.au
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8 May 2012
ASX ANNOUNCEMENT
Apollo is now in a strong financial position having agreed commitments to raise $3.6 million ($1.6 million completed on 2 May, 2012 as announced to the ASX) at $0.04 per share.
Apollo expects to announce a maiden JORC-compliant resource on the Sequoia prospect at CHIP shortly.
SUBSCRIPTION AGREEMENT TERMS
Under the terms of the Subscription Agreement, JSPL will subscribe for 25,000,000 ordinary shares at $0.04 per share for gross proceeds to the Company of $1,000,000, representing 9.25% of the total shares in Apollo.
The Subscription Agreement is not subject to regulatory approvals from any Australian or State government agency. Completion is expected during the week of 7 May, 2012.
ABOUT JINDAL STEEL AND POWER LIMITED
Jindal Steel and Power Limited (JSPL) (BSE: 532286, NSE: JINDALSTEL), is a A$16.7 billion Indian steel and energy company based in New Delhi, India and a division of Jindal Group conglomerate.
www.jindalsteelpower.com
JSPL is one of India's major steel producers with a significant presence in sectors including mining, power generation and infrastructure.
The company manufactures and sells sponge iron, mild steel slabs, ferro-chrome, iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron plant.
The company has committed investments exceeding US$30 billion and has several business initiatives running simultaneously across continents.
ENDS
FOR FURTHER INFORMATION CONTACT:
Dominic Tisdell Chief Operating Officer Apollo Minerals Limited [email protected] Tel: +61 2 9078 7660
Media and Investor Enquiries: Tony Dawe Investor Relations Tel: +61 8 9388 0944 Email: [email protected]
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8 May 2012
ASX ANNOUNCEMENT
ABOUT APOLLO’S PROJECTS
Apollo Minerals Ltd (ASX Code: AON) is an iron ore and minerals explorer and developer with projects in South Australia and Western Australia. The Company’s key focus is to develop an iron ore project at each of Apollo’s project sites, namely the Pilbara, WA and the Gawler Craton, SA.
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The Commonwealth Hill site lies on the northwest margin of the Gawler Range Volcanics Domain, where the older basement rocks are interpreted as Archaean gneisses of the Mulgathing Complex, which are intruded by late syntectonic granitoids of Palaeoproterozoic age. In the southeast of the Project, Mesoproterozoic Gawler Range Volcanics overlie the older basement and coeval Hiltaba Suite granitoids intrude both the volcanics and the older basement. Major northwest and northeast trending fault structures are evident from aeromagnetic data.
Commonwealth Hill straddles the
Adelaide to Darwin Railway line, 120km south west of the opal mining centre of Coober Pedy, 30km east of Challenger Gold Mine, 70km south-west of Cairn Hill and 100km west of Prominent Hill IOCG mines and 100km west of the Peculiar Knob DSO iron ore mine. The railway connects Commonwealth Hill directly with several ports capable of shipping iron ore.
The Titan Base Metals and Precious Metals Project is also part of Apollo’s large Commonwealth Hill holding (including the namesake Commonwealth Hill Iron Project) that covers an area of approximately 750 km[2] across three tenements in the central Gawler Craton of South Australia.
Apollo is currently evaluating the potential to develop a medium sized iron mine on the property. Drilling has identified both coarse grained magnetite and Direct Shipping Ore (DSO) style mineralisation including 24m at 57% Fe inclusive of 4m at 70% Fe. Previous work has highlighted the possibilities of producing premium quality iron concentrates and sinter fines products.
The Mt Oscar Iron Project is located in north-western part of the Pilbara Craton in north-west Western Australia, and is approximately 30 km from the coast. The magnetite-bearing rocks at Apollo’s Mt Oscar Project outcrop over an oval shaped area measuring some 5km by 2km. The iron rich horizons are strikecontinuous for up to 5.5km and are locally up to 160m thick with an average interpreted thickness in excess of 60m. Recent metallurgical work has demonstrated that the production of marketable products is possible i.e. >60% Fe, <8% (Al2O3 + SiO2).
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