THE BOURSE WHISPERER: Apollo Consolidated (ASX: AOP) is soon to be $7 million richer having agreed conditional terms for the proposed sale of its 20 per cent interests in Exore Resources’ (ASX: ERX) Bagoe and Liberty projects in northern Cote d’Ivoire to Ibaera Capital Fund LP.
Under the terms of the proposed sale, Apollo will receive consideration of US$4.5 million ($7M at the current exchange rate) in cash upon completion of the transaction.
The sale is subject to Exore not exercising its pre-emptive rights under the terms of the existing Joint Venture agreement or waiving those rights during a 30-day pre-emption period.
If this condition is satisfied, completion will occur within 15 business days after in-country approvals have been received and the relevant registration process has taken place.
“We consider this an attractive opportunity to realise the somewhat hidden value of this asset,” Apollo Consolidated managing director Nick Castleden said in the company’s announcement to the Australian Securities Exchange.
“Our previous decisions to focus on building value at Rebecca have been supported by strong subsequent results, and in our view this represents an attractive premium relative to the value of the interests inferred from recent ERX share price trading values.
“We welcome the additional non-dilutionary funding that, on completion, would bring our cash position to well over $20 million.
“Importantly we still retain the valuable 1.2 per cent royalty over the advanced Seguela project in central Cote d’Ivoire, which is the subject of a recently announced Preliminary Economic Assessment on its one million ounces Mineral Resource by owner and operator Roxgold Inc (TSX: ROXG).”