October 12, 2008

Apollo Minerals acquires stake in Mt Oscar

Apollo Minerals Limited announced that it has completed its acquisition of an 80% stake in the Mt Oscar Iron Ore project in Western Australia, with the backing of a Chinese partner. Apollo said it will commence an aggressive exploration program on the tenements by March 2008.

Perth based Apollo, which listed in October this year, said it completed the acquisition ahead of schedule following the signing of a joint venture agreement with the Chinese steel group. Apollo said that “The signing of the MoU with the strategic Chinese partner is a significant boost to its iron ore acquisition strategy. It is a step by Apollo towards becoming a significant iron ore company.”

Under the terms of the transaction, Chinese partner has the option to subscribe to up to USD 3.3 million in Apollo shares at 34 cents per share, to take an interest over 15% in Apollo, subject to relevant approvals. Apollo said the Chinese group would immediately acquire 2.94 million shares in Apollo or 4% for USD 1 million.

As well, under the MoU, the Chinese group has indicated its intention to take a 19.9% minimum interest in Apollo and has the ability to negotiate an agreement to market iron ore produced from the project.