Apollo Minerals will undertake a share placement to raise AUD 1.3 million to fund iron ore exploration at the Commonwealth Hill Project in South Australia.

As per report around 23.5 million shares will be issued at AUD 0.055 per share, within the company's 15% capacity, and about 5.9 million free attaching options, exercisable at AUD 0.10 per share, will be issued following shareholder approval at the annual general meeting.

Proceeds of the capital raising will be used to fund a maiden drilling program and project development Scoping Study for the Sequoia prospect at the Commonwealth Hill Iron Project.

The project straddles the Adelaide to Darwin Railway line, 120 kilometres south-west of the opal mining centre of Coober Pedy and 30 kilometres east of the Challenger Gold Mine.

The railway connects Commonwealth Hill directly with several ports capable of shipping iron ore.

Apollo is currently evaluating the potential to develop a medium sized iron mine on the property. Drilling has identified both coarsely crystalline magnetite and direct shipping ore-style mineralisation, including 24 metres at 57% iron.

The company will also be carrying out a detailed ground gravity survey over its St Andrews direct shipping ore-style iron prospect to determine the potential extents of the high grade, near surface iron mineralization.

(Sourced from www.proactiveinvestors.com.au)