Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
This is all just pre/post merger jitters. The Apollo people are trying to figure out who got the best deal ,them or the Linear shareholders. Linear people are doing the same. I think there has been a larger sell off with LINEAR due to the 2.30 share price. This stock could easily be a 5 dollar stock in a year if consolidation is no less than 1 for 3 and no more than one for 5. the upside is huge .A 2000.00 investment now in AGT could be 100% profit in a year if you compare whats out there to what this company will have. 1 A producing mine with inexpensive expansion in the works ,100,000 oz s per year. 2 Another development project low cost mine in the works and 3 .Some of the best exploration properties in North America for penny stock mining companies which could fetch a dollar on there own merits in an advancing gold mining market. The real trick here is Linear is full of money people ,ACCOUNTANTS which will make these things happen by close watch of all financial workings . The deal that gave Apollo financing for the Black Fox mine was unfair to AGT. THE Australian Bankers are shareholders I personally would like to leave. They hold a lot of warrants right now ergo the dilution problem,the hedging problem and the bad terms problem . None of this would have happened with Linear involved a couple years ago . All in my opinion ,Southpen
We should be holding here .35 .32 if not adding is good ...
Yea, the short trerm dilution will be absorbed by the merger (LRR). It appears any dilution created seems small in the large pcture. Chna has been gettng in on a few Canadian gold stocks. I wonder if they're looking at this.
On a happier note I would like to point out that The new Apollo gold has very valuble properties.,With the price of gold to settle in above 1500 in the future I believe 50 million in debt will be paid off sooner than expected. Only a portion is hedged at around 900.00.Also the properties are all worth cash and when you have too many you can make JV with others which will limit our companies involvement ,financialy.Its a good time to buy ,get ready for consolidation.They should do about 1 for 4 making a very good number for a small producer .At that point I see this stock at 5 dollars and above,imho ,southpen
I like the idea that the debt woahs will be lessoned and that Apollo share holders will be majority owners of the new company.
Short term dillution will be good even for us longs as we can have additional buyins.
We will either get rich from this,or go bust,imho
Apollo Gold Corporation (TSX: APG) (NYSE Amex: AGT) (“Apollo”) and Linear Gold Corp. (TSX: LRR) (“Linear”) are pleased to announce the signing of a binding letter of intent (the “Binding Agreement”) to complete a business combination (the “Merger”) by way of a court approved plan of arrangement to create an emerging Canadian mid-tier gold producer. Under the agreement, Apollo has agreed to acquire all of the outstanding common shares of Linear in exchange for Apollo common shares at an agreed exchange ratio of 5.474 Apollo common shares per Linear common share (the “Exchange Ratio”). This represents a 20.0% premium to Linear shareholders based on the 20-day volume weighted average share price (“VWAP”) of both companies on the TSX as of March 8, 2010.
Under terms of the agreement announced today:
* Linear shareholders will receive 5.474 Apollo common shares per Linear common share which implies a price per Linear share of C$2.30
* Following completion of the Merger, Apollo will be owned 52.2% by current Apollo shareholders and 47.8% by current Linear shareholders based on current shares issued and outstanding
o On a fully diluted basis, Apollo will be owned 57.1% by current Apollo shareholders and 42.9% by current Linear shareholders
* The Merger values Linear at approximately C$102 million based on current shares outstanding
* Post Merger, the Apollo Board will be comprised of: (i) four existing Apollo directors; (ii) two Linear directors, including the position of Chairman of the Board; and (iii) one new director to be mutually agreed upon
* Linear will purchase, by way of a private placement expected to close shortly after the date hereof (upon receipt of applicable stock exchange approvals), 62,500,000 Apollo common shares at a price of C$0.40 per share for gross proceeds of C$25,000,000
* The Merger has been unanimously approved by the boards of directors of both companies, and the management and directors of both companies have entered into support agreements, representing approximately 3.7 million Apollo shares and 3.4 million Linear shares
* Apollo’s project debt lenders have agreed, subject to a number of terms and conditions, to a standstill until September 30, 2010 in the event of certain events of default
* Following completion of the Merger, Apollo will undergo a rebranding which will result in a new company name
* The Merger will be completed by way of a court-approved plan of arrangement
R. David Russell, President and CEO of Apollo, commented, “This is an exciting time for the shareholders of both Apollo and Linear as we take a very important step towards building one of Canada’s premier mid-tier gold producers. The successful completion of this Merger will position the combined company to deliver both near and long-term value to its shareholders through existing production growth as well as significant development and exploration upside across a diverse portfolio of precious metal properties.”
Wade K. Dawe, President and CEO of Linear, said, “This merger allows Linear shareholders to rapidly transition from a development and exploration company to an established gold producer while continuing to participate in the exploration and development upside of the combined assets of the merged company.”
Upon completion of the Merger, the combined company will have the following compelling and dynamic profile:
* 2010 estimated production at Apollo's Black Fox Mine in the Timmins Mining District, Ontario of approximately 100,000 ounces of gold
* Expected medium-term production growth by 2013 of approximately 70,000 additional ounces of gold per year from Linear's Goldfields project in northern Saskatchewan
* Total reserves of approximately 2.3 million ounces of gold (within 31.2 million tonnes at an average gold grade of 2.3 grams per tonne) in Canada
* Excellent exploration potential within highly prospective land packages in multiple jurisdictions, mostly in Canada and Mexico
* Strengthened balance sheet with lowered debt burden and improved financial flexibility with cash and cash flows available for continued exploration and development
* Strong management team with complementary experience in exploration, development, operations, and financing
Benefits to Apollo Shareholders
* After closing, allows Apollo to materially reduce project debt levels and provides immediate capital to fund the underground development at Black Fox as well as an aggressive exploration program at Grey Fox and Pike River to advance towards feasibility in the coming years
* Provides a near term development asset in the Goldfields project that will add low-cost production of approximately 70,000 ounces of gold per year by 2013
* Expands portfolio of quality exploration assets to include the Chiapas area of southern Mexico and the Dominican Republic
* Delivers value to both current and new shareholders of the company
Benefits to Linear Shareholders
* Attractive premium of 20% to Linear shareholders based on 20-day VWAP
* Transitions Linear from a development stage company to a growing gold producer, potentially garnering improved valuation multiples
* All-share Merger allows Linear shareholders to continue to participate in the exploration and development upside of a broad portfolio of properties
* Leverages Apollo's exploration and mine development team which can assist in advancing Linear's Goldfields project
Summary of Merger
The proposed business combination between Apollo and Linear is expected to be completed by way of a court approved plan of arrangement whereby each Linear common share will be exchanged for 5.474 Apollo shares and Linear will become a wholly-owned subsidiary of Apollo. The number of Apollo shares received upon exercise, and the exercise price, of Linear's outstanding options and warrants will be adjusted proportionately to reflect the share exchange ratio. After giving effect to the Merger, current Linear shareholders will own approximately 42.9% of Apollo (calculated on a fully-diluted basis). The Merger will be subject to the approval of holders of not less than 66 2/3% of the Linear common shares and of a majority of the Apollo common shares held by disinterested shareholders voted at special meetings of shareholders that will be called to approve the Merger. Full details of the Merger will be included in the Management Information Circular to be filed with the regulatory authorities and mailed to Linear and Apollo shareholders in accordance with applicable securities laws.
A Special Committee comprised of independent members of Linear's Board was formed to consider the Merger. At a meeting of the Special Committee and Board of Directors of Linear held on March 6, 2010, CIBC World Markets Inc. delivered an oral opinion to the effect that as of the date thereof the Exchange Ratio is fair from a financial point of view to the shareholders of Linear. The Linear directors and officers have also agreed to vote their shares in favour of the Merger under the terms of support agreements with Apollo.
A Special Committee comprised of independent members of Apollo's Board was also formed to consider the Merger. At meetings of the Special Committee and Board of Directors of Apollo held on March 8, 2010, Haywood Securities Inc. delivered an oral opinion to the effect that as of the date thereof the consideration to be paid under the Merger is fair from a financial point of view to the shareholders of Apollo. The Apollo directors and officers have also agreed to vote their shares in favour of the Merger under the terms of support agreements with Linear.
The Binding Agreement entered into in connection with the Merger includes reciprocal commitments by Linear and Apollo not to solicit or initiate discussions concerning alternative transactions to the proposed Merger. If the Merger is not completed, the terminating party will pay the other party a termination fee, under certain circumstances, of C$4 million. The companies have also provided certain other customary rights, including a right to match competing offers.
The Merger is subject to customary closing conditions including receipt of all necessary court and regulatory approvals, including the approval of the Toronto Stock Exchange and the NYSE Amex. The Merger is expected to close in the second quarter of 2010.
Private Placement Financing & Apollo Project Debt Principal Reduction Repayment
Linear will acquire, by way of a private placement, 62,500,000 Apollo common shares at a price of C$0.40 per share for gross proceeds to Apollo of approximately C$25,000,000 (the "Private Placement"). The Apollo shares issued in the Private Placement will be subject to the four-month hold period set out in NI 45-102 and will be "restricted securities" under United States federal and state securities law.
Apollo will use the proceeds of the Private Placement to repay US$10,000,000 of indebtedness under its Black Fox project facility as described below. The balance of the proceeds will be used for working capital purposes.
The Private Placement is not conditional upon the completion of the Merger. The closing of the Private Placement, which is subject to customary conditions precedent, including approval of relevant stock exchanges, is expected to occur on or about March 11, 2010.
Following closing of the Merger, an additional US$10 million will be repaid to lower the project facility principal to US$50 million. Further repayments will reduce the principal to US$35 million by December 31, 2010 and a repayment schedule for the remaining balance is to be agreed by September 30, 2010.
Black Fox Project Finance Facility
Concurrently with the execution of the Binding Agreement, Apollo entered into a consent letter in respect of its US$70 million Project Facility Agreement (the “Facility Agreement”) with Macquarie Bank Limited and RMB Australia Holdings Limited (together, the "Banks"). Pursuant to the consent letter, the Banks agreed to, subject to the terms and conditions contained in the consent letter, (i) consent to the Merger and the Private Placement, (ii) subject to completion of the Merger and satisfaction of various terms and conditions, not to accelerate repayment of any amounts owing under the Facility Agreement or to enforce any remedies in each case prior to September 30, 2010, in the event of certain “events of default” or “review events” (each as defined in the Facility Agreement), and (iii) make certain amendments to the Facility Agreement. The amendments to the Facility Agreement include amendments to the repayment schedule as discussed in the previous paragraph and an extension to September 30, 2010 of various covenants contained in the Facility Agreement including relating to the satisfaction of certain completion tests related to the Black Fox project and the obligation to fund a debt reserve account.
Management Team and Board of Directors
R. David Russell, President & CEO of Apollo, will continue to act in his current role within the new company. Wade Dawe, President & CEO of Linear, will assume the role of Chairman of the Board of Directors of Apollo post closing. The Board of Directors of Apollo will be comprised of seven members, including four current Apollo board members or Apollo nominees, two Linear nominees, including the Chairman, and one nominee who shall be a technical person mutually agreed upon by Apollo and Linear.
Advisors and Counsel
Apollo’s financial advisor is Haywood Securities Inc. and its legal counsel is Fogler Rubinoff LLP in Canada and Davis Graham & Stubbs LLP in the United States. The financial advisor to Linear is CIBC World Markets Inc. and its legal counsel is Wildeboer Dellelce LLP.
Conference Call
A conference call hosted by Messrs. Russell and Dawe to discuss this compelling combination will be held at 11 a.m. Eastern Time (9 a.m. Mountain Time and 8 a.m. Pacific Time) today, March 9, 2010.
Conference Call Details:
Call-in Number – North America (877) 407-0778Call-in Number – International (201) 689-8565
The conference call will be available for replay until March 22, 2010 by calling (877) 660-6853 for North American callers and (201) 612-7415 for international callers, using both account 286 and conference ID#346849 for playback. A link to the conference call will be available on Apollo’s website (http://www.apollogold.com/en/investors_presentations.htm) until March 22, 2010. The presentation slides for the conference call will be available on Apollo’s website this morning, using the above link.
About Apollo
Apollo is a growing gold producer that operates the wholly owned Black Fox Mine in Ontario, Canada, which commenced gold production in May 2009. In 2010, Apollo expects to produce approximately 100,000 ounces of gold from its Black Fox Mill at total cash costs between US$500 and US$550 per ounce produced. Apollo is also exploring the adjoining Grey Fox and Pike River properties, all in the Timmins gold district in Ontario, Canada, as well as the Huizopa Joint Venture (80 percent Apollo and 20 percent Minas De Coronado, S. de R.L. de C.V.), an early stage, gold-silver exploration project, approximately 16 kilometers (10 miles) southwest of Minefinders Dolores gold-silver mine, in the Sierra Madres in Chihuahua, Mexico.
The Qualified Person who reviewed Apollo’s technical information is Apollo’s Senior Vice President of Exploration Richard F. Nanna.
About Linear
Linear Gold Corp is a well financed gold exploration and development company committed to maximizing shareholder value through a strategy of mine development, focused exploration, and effective risk management through selective partnerships and acquisitions. Linear's flagship development property located near Uranium City, Saskatchewan, hosts an economic gold deposit and is now in the development stage to become a 70,000 - 90,000 ounce per year gold producer. Linear also holds an extensive and diverse portfolio of mineral projects in the Dominican Republic and Mexico.
Additional Information and Where to Find It
In connection with Apollo’s and Linear’s solicitation of proxies with respect to the meeting of shareholders of each of Apollo and Linear to be called with respect to the proposed plan of arrangement, Apollo and Linear will file a joint proxy statement with the Securities and Exchange Commission (the “SEC”). SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT IS FINALIZED AND DISTRIBUTED TO SHAREHOLDERS BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain a free-of-charge copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC’s website at http://www.sec.gov. Shareholders of Apollo will also be able to obtain a free-of-charge copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Apollo Gold Corporation, 5655 South Yosemite St., Suite 200, Greenwood Village, Colorado 80111-3220 or (720) 886-9656, or from Apollo’s website, www.apollogold.com. Shareholders of Linear will also be able to obtain a free-of-charge copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Linear Gold Corp., Suite 502, 2000 Barrington Street, Halifax, Nova Scotia B3J 3K1 or (902) 422-1421, or from Linear’s website, www.lineargoldcorp.com.
Interests of Participants in the Solicitation of Proxies
Apollo and certain of its directors, executive officers and other members of its management and employees may, under the rules of the SEC, be deemed to be “participants” in the solicitation of proxies from its shareholders in connection with the proposed merger. Information concerning the interests of the persons who may be considered “participants” in the solicitation is set forth in Apollo’s proxy statements and Annual Reports on Form 10-K (including any amendments thereto), previously filed with the SEC, and in the proxy statement relating to the plan of arrangement when it becomes available. Copies of these documents can be obtained, without charge, at the SEC’s internet website at www.sec.gov or by directing a request to Apollo at the address above.
Forward-looking Statements
Certain statements in this presentation relating to the proposed Merger and the companies' exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. These statements include statements regarding completion of the Merger and the Private Placement, the near and long term value of the Company, future production by Apollo or the combined company future exploration activities and advancement towards feasibility, future valuation multiples and estimates of future cash flows, cash costs, strip ratios, grades, mill capacities, recovery rates, mine life, capital expenditures and future development at Apollo’s and Linear’s properties. The companies do not intend, and do not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that the required approval will be obtained from the shareholders of Apollo or Linear, that all third party regulatory and governmental approvals to the Merger will be obtained and all other conditions to completion of the Merger will be satisfied or waived, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will not be less than identified mineral reserves. The companies make no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the companies from achieving their targets. Other factors are disclosed under the heading “Risk Factors,” “Risks and Uncertainties” and elsewhere in Apollo and Linear documents filed from time to time with the Toronto Stock Exchange, SEDAR and other regulatory authorities, and Apollo documents filed with the NYSE Amex, the United States Securities and Exchange Commission.
Non-GAAP Financial Measures
The term “total cash cost” is a non-GAAP financial measure and is used on a per ounce of gold basis. Total cash cost is equivalent to direct operating cost as found on the Consolidated Statements of Operations and includes by-product credits for payable silver, lead, and zinc production. We have included total cash cost information to provide investors with information about the cost structure of our mining operations. This information differs from measures of performance determined in accordance with GAAP in Canada and in the United States and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP and may not be comparable to similarly titled measures of other companies.
News -
Long Term = Good
Short Term = Not so good; diluted shares in the merger IMO
I think this is probably the last opportunity to get in at this level. Looks to me like the reserves are going to increase very dramatically, huge possibility of this mineralization continuing and connecting all three properties. Can you imagine the amount of gold at 1/2 0z per tonne, and you know what it is there!!!!!
Paid
Right, im with you on that ....
There was a clear over-reaction of the world's debt woahs on gold and miners in particular.
I don't think that it is over yet and miner stocks still ( stress that anything could happen) might have some down distance to go yet.
Clearly the empty heads on business news are doing their dilligence to get bagholders to buy into this bear market rally.
Apollo might have a few more buy in periods.
I did, this was bottom!! damn
You notice that I didn't call a bottom.....I was very bearish on the stock (read my post). I was just saying that it MIGHT have a bounce in the near term.
what about now?
Buck, you obviously know AGT well. I think that it might be a great trading stock in the short term...high volatility and all that. I am watching it to find a good time to jump in
I think the only thing that was being debated was in fact about the Montana Mines project.
Yes, this company looks pretty bad right now on paper, but I am looking to see if there is cost progress on the 10k and the next q after that.
I think that this miner is just like every one getting hit with volatility that has to do more with China's tightening than anything else.
This one held pretty well even after the 10Q was released and started to drop more when China started tightening.
Markets are always big on the knee-jerking'
I don't doubt that they will succeed, but I don't live in a long-term world. I am looking at the company RIGHT NOW and seeing problems. The sentiment about Gold stocks in general is negative, AGT has going concern issues and needs to find financing, they haven't turned the corner on profitability, etc, etc...
That being said: I think that AGT might be a fun stock to trade. It has a history of volatility and any news positive or negative will send this stock "to the races"
Montana tunnels care and maintenance costs,are now going into productive applications ,like a road which will be built this year on the Mexican property,about 8 km,which will give AGT the ability to set up operations there. The savings of C&M is about 600/k per yr. The cost of the road is about 500/k. Again , good management use of capitol savings and expenses. I know this was not addressed to me but I thought this should be said. Does everyone realise how difficult getting a mine in full operation is.The next objective is to expand the resource around the infrastruture so that this will stll be in operation 20 years from now,or more .which with Grey Fox and Pike River they will succeed. southpen
I agree that costs run high with this company and revenue is short.
I wasn't very impressed with the cost per ounce in the last 10Q. Maybe that was upstart costs, but we will see.
Buck,
I agree with you, but my point is that they need SOMETHING positive to help turn the stock around. A fire-sale of Montana Mines is not going to meet their most basic needs>>>>more capital.
They do have some interesting properties, but will they be able to make them pay?
Right,
I also see this recent sell off a broad spectrum across the miners.
Another buy in opportunity around the corner.
Make that 2 guys opinion.Care and maintenance of MT was costing 50k /month. & it would cost 70 m to get back in operation,IF their partner has the capitol ,which they do not. This was a very good decision by David Russell and his team
The only thing that I'd debate is the part about The Montana mines deal.
I think that they were looking to dump it and focus on Black and Grey fox where they have a 100% ownership of. The 50/50 needed a lot of work and money and I believe that the decision would have needed to be quick by what I read in the SEC filings.
Just one guys opinion.
AGT could be a good stock to trade, but its not for the faint of heart - read my analysis of it here: http://investorsoup.com/2010/01/when-is-gold-coming-back-gss-and-agt/
Looks like we must literally 'dig our way out of debt" lol
It has always been the terms of the loan agreement that has held the share price down. It was the conditions of the economy at the time that made it nessacary to acept the loan terms. There is nothing negative except that, AGT is a gem as it sits from day one just greedy bankers. However we win in the end. Got all mine at an average of .19 and have been holding long and will continue.
Paid
As a long time shareholder i feel it is appropriate for me to say the positives and the negatives with the company.The negative is 72 million in debt and over 300 million shares ,fully diluted. When the warrants are used it will bring 20 million more into the treasury.The lender of the 72 million is the holder of most warrants.With that said it is unlikely that AGT will ever really have any serious financial problems since it is the best interest of the lenders for AGT to not only survive but to prosper.The media has been rough on this little Gold company.The payback schedule was never realistic.The Lender knows that now and is happy to change payment details to ensure AGTs success.BF is doing great and GF and PR are almost certain to add to the resource in an economically agreeable way.When the notes are paid AGT will flourish.It is great to have a solid producer with an excellent mill bought and paid for as well as huge potential for future growth in Ontario.
Adding more yesterday and for a few more days now, time for a big move soon. Numbers looking good, quarters will show huge gains and might I say its about time we have been under valued way to long.JMHO
Paid
Looks to be an underpriced PRODUCER of the fine yellow metal-pps at the bottom of a nice channel,good share structure-I'm in.
Starting to look good now higher highs and higher lows on the 4 spikes in the last 2 months, if next Quarter shows any good numbers at all we will be on the move. It all looks good for massive accumulation from now till 15/01/2010 then big move up over 1.00 way undervalued at this time. Adding more all week at these prices.IMO
Paid
AGT is a good one methinks- been around for a while too
Apollo Gold Reports Third Quarter 2009 Results
DENVER--(BUSINESS WIRE)--Apollo Gold Corporation (“Apollo” or the “Company”) (TSX: APG - News) (NYSE Amex: AGT) announced today a net loss of $14.0 million, or $0.05 per share, for the three months ended September 30, 2009, as compared to net income of $0.5 million, or $0.00 per share, for the three months ended September 30, 2008. There was a net loss for the nine months ended September 30, 2009, of $37.5 million, or $0.16 per share, compared to net income of $2.9 million, or $0.02 per share, for the same period in 2008. Unless otherwise indicated, all dollar amounts are reported in US currency.
$10.2 million of the loss in the third quarter 2009 is a result of recording an unrealized loss on derivative contacts comprised of (1) an unrealized loss of $14.3 million for the change in value recorded for gold forward sales contracts held as of September 30, 2009, and (2) an unrealized gain of $4.1 million for the change in value of Canadian dollar foreign exchange contracts held as of September 30, 2009. Both the gold forward sales contracts and Canadian dollar foreign exchange contracts were entered into on February 20, 2009, in connection with its $70 million project financing facility with respect to its Black Fox project (the “Project Facility”).
R. David Russell, President and CEO of Apollo, said, “This third quarter was our first full quarter of production and I think we made good progress at Black Fox by producing approximately 20,000 ounces of gold with the mill operating at approximately 1,800 tonnes per day as per our target. We will now attempt to increase throughput to reach our next goal of 2,000 tonnes per day by the end of this year. Our total cash cost per ounce was higher than we projected but we saw many additional costs of commencing production at both the mine and mill and one of our focuses going forward will be to lower our overall cost of production. One example would be that we estimate that the commissioning of our conveyor and high pressure screening system in late November will reduce our costs by approximately $20 per ounce of gold. On the exploration front, our drilling program at Grey Fox has been a success and I look forward to the results of the next group of drill assays and achieving our objective, which is to turn the results into a resource during the first quarter 2010. I was also pleased to acquire the Pike River property during the third quarter because it means that we now have a 6.5 kilometer land package on which to continue our exploration program.”
Third Quarter Highlights and Other Recent Developments
Black Fox
During the third quarter of 2009, we mined 1,644,000 tonnes of material of which 217,000 tonnes was gold ore. The Black Fox mill processed 160,900 tonnes of ore (1,749 tonnes per day), at a grade of 4.05 grams per tonne, achieving a recovery rate of 94%, for total gold production of 19,718 ounces. St Andrew Goldfields custom milled on our behalf an additional 62,600 tonnes of lower grade ore, with a grade of 1.51 grams gold per tonne at a recovery rate of 92% for additional gold production of 2,760 gold ounces. Therefore, total gold produced was 22,478 ounces during the third quarter. Gold ounces sold during the third quarter of 2009 were 19,848 ounces. All gold sold was against the forward sales contracts at a realized price of $875 per ounce. The total cash cost1 per ounce of gold for the quarter was $575. Black Fox is scheduled to complete the overall mill site upgrade project in the fourth quarter of 2009 with the commissioning of the new conveyor and the re-commissioning of the high pressure screen system this December. An expanded tailings dam water management system is also expected to be completed in the fourth quarter of 2009. Gold production in the fourth quarter of 2009 is estimated to be approximately the same as the third quarter of 2009.
1 The term “total cash cost” is a non-GAAP financial measure. Please see the note regarding non-GAAP financial measures at the end of this press release.
Grey Fox
We commenced a drilling program on our Grey Fox property, located about 3.5 kilometers southeast of the Black Fox mine, in August 2009 and, through the end of October, thirty-four holes had been completed. Assay results have been released on the first thirteen holes. The results show continuity in shallow, multiple, mineralized zones with two holes hitting high grade gold with individual one meter samples that intercepted grades from 45.19 to 61.44 grams per tonne (1.32 to 1.79 ounces gold per ton). Hole GF09-24 also contained a mineralized zone 15.26 meters thick (true width) with an average grade of 3.36 grams per ton. This year’s drilling follows the drilling program of 16 holes completed by Apollo in 2008 which was successful in intersecting gold mineralization in rocks similar to the host rocks of the Black Fox Deposit and included high grade mineralization of 3.5 meters grading 455 grams gold per tonne (13.27 ounces of gold per ton). For complete drilling results release to date, see our website at www.apollogold.com.
Huizopa Project
On July 7, 2009, we filed a Canadian National Instrument 43-101 for the Huizopa project. This 43-101 more fully describes the property and the drilling results from our 2008 drilling program, but does not contain any resources or reserves.
Montana Tunnels
During the third quarter of 2009, the Company adopted a plan to dispose of Montana Tunnels Mining, Inc. (“MTMI”), which includes the Montana Tunnels and Diamond Hill mines. The Montana Tunnels mine, a 50% joint venture (“Montana Tunnels”), is an open pit mine and mill that produced gold dore and lead-gold and zinc-gold concentrates, located in the State of Montana. Montana Tunnels was placed under care and maintenance on April 30, 2009. The Diamond Hill mine, also located in the State of Montana, is currently under care and maintenance. On September 30, 2009, the Company signed a letter of intent to sell MTMI to the current 50% joint venture partner, Elkhorn Goldfields, Inc., for cash of $5.0 million payable in installments through May 2010 and a 4% net smelter royalty on future production at Montana Tunnels up to a maximum of $4.0 million. The consummation of the sale is subject to negotiation of definitive documents relating to the sale and payment of the $5.0 million cash purchase price. As of September 30, 2009, the Company recorded an impairment of $1.6 million on the net assets of MTMI. MTMI has been classified as a discontinued operation as of September 30, 2009.
Project Facility of $70 million
As at September 30, 2009, we were in compliance with the various operational covenants of the Project Facility. However, as a result of lower than planned gold production, during the third quarter of 2009 a “review event” as defined in the Project Facility was triggered. The occurrence of a review event allows the Banks to review the Project Facility and determine if they wish to continue with the Project Facility. On September 28, 2009, the Banks agreed to defer (i) the first scheduled repayment of $9,300,000 due on September 30, 2009, under the Project Facility and (ii) the requirement to fund the associated debt service reserve account also due on September 30, 2009, which, in accordance with the terms of the Project Facility, requires a reserve amount equal to, at all times after initial funding, the greater of $5,000,000 or the aggregate repayment amount due on the next repayment date. This deferral will enable the Banks and the Company to complete an ongoing technical review of the Black Fox project with the objective of rescheduling the quarterly repayment installments under the Project Facility. If we are not able to satisfactorily reschedule the quarterly repayment installments, then the payment of $9,300,000 and the reserve account funding obligation, each originally due on September 30, 2009, must be satisfied on the earlier to occur of (i) the completion of the Bank’s technical review process of the Black Fox mine and (ii) December 31, 2009.
http://finance.yahoo.com/news/Apollo-Gold-Reports-Third-bw-1520745833.html?x=0&.v=1
I like agt.
Check out www.pmttoday.com
usau up 16% today too
Got to love the strength of the gold price and todays upward movement here...
Rockin' here, holding nicely ;) Apollo Gold Announces Additional Assay Results for its Grey Fox Drilling Program 11/2
I called gold at 425...even have the note if you want to carbon date it!!!!
lol
Rock
i've been saying that since gold was at 700 per oz
Gold making a monster move over night! Looking good...buy gold, eh!!!
NEWS out: Apollo Gold Announces Additional Assay Results for its Grey Fox Drilling Program
Nov 2, 2009 08:49:00 (ET)
DENVER, Nov 02, 2009 (BUSINESS WIRE) -- Apollo Gold Corporation ("Apollo" or "we") (AGT, Trade ) is pleased to provide an update on the 2009 drilling program in progress on its Grey Fox property.
The drilling program commenced on August 10,( )2009 and to date 34 holes have been completed. Assay results were released on the first seven holes (GF09-17 through GF09-23) on October 16, 2009. Apollo is pleased to provide assay and drill holes information on another 6 drill holes (GF09-24 through GF09-29) which are set out below. The location of all drill holes are shown in Figure 1.
The assay results continue to show continuity in shallow, multiple, mineralized zones. Newly received assay data in Holes GF09-24 and GF09-28 hit high grade gold with individual one meter samples that intercepted grades from 45.19 to 61.44 grams per tonne (1.32 to 1.79 ounces gold per ton). Hole GF09-24 also contained a mineralized zone 15.26 meters thick (true width) with an average grade of 3.36 grams per ton. We have highlighted the mineralized zones in the results shown in Table 1 below which also contains information reporting the individual assays that make up the zone immediately above each zone.
The 2009 drilling program follows the drilling program of 16 holes completed by Apollo in 2008 which successfully intersected gold mineralization in rocks similar to the host rocks of the Black Fox deposit and included high grade mineralization of 3.5 meters grading 455 grams gold per tonne (13.27 ounces of gold per ton).
In addition to the 29 holes assayed (16 holes from 2008 and 13 from 2009), we are still awaiting the results of a further 21 holes drilled in September and October 2009, all of which were drilled along the contact zone at 12.5 meter and 25.0 meter spacing with the objective of showing continuity to the mineralization and being able to publish a measured and indicated resource statement by the end of the first quarter 2010.
"A chance to develop a strongly mineralized, shallow gold resource on land contiguous with our open pit operation at the Black Fox mine is a great opportunity for Apollo," says Richard Nanna, Vice President-Exploration for Apollo. "It is also encouraging that all holes drilled and assayed to date have intersected the mineralization and indicate that it may continue to trend onto our newly acquired Pike River Property which adds to the potential of expanding gold resources to the north of the Grey Fox property. Our drilling program is continuing on the "contact zone" of Grey Fox and I look forward to updating the market as we receive more assay results on the other holes."
The Grey Fox project is located about 3.5 kilometers southeast of Apollo's Black Fox mine, which commenced gold production in May 2009. Apollo owns a 6.5 kilometer land package which consists of the Black Fox mine, Pike River to the south-east of the Black Fox mine, which was acquired in September 2009, and Grey Fox which is to the south-east of Pike River. Figure 2 shows the total Apollo land package surrounding its Black Fox mine.
Table 1
2009 Grey Fox Drilling
Hole ID From (m) To (m) Core Width (m) Zone True Width (m) Assay grams Au/t Assay ounce Au/ton
GF09-24
66.7 67.2 0.50 40.46
67.2 67.7 0.50 45.19
GF09-24 66.7 67.7 1.00 0.83 42.82 1.25
69.7 70.1 0.40 1.51
70.1 72.0 1.90 5.01
72.0 72.4 0.40 1.30
72.4 73.4 1.00 0.41
73.4 74.0 0.60 3.02
74.0 74.6 0.60 6.58
74.6 75.6 1.00 0.82
75.6 76.6 1.00 0.41
76.6 77.6 1.00 0.55
77.6 78.6 1.00 0.41
78.6 79.2 0.60 0.62
79.2 80.2 1.00 1.30
80.2 80.9 0.70 2.19
80.9 81.9 1.00 7.27
81.9 82.4 0.50 5.01
82.4 83.3 0.90 3.50
83.3 84.0 0.70 29.76
84.0 85.0 1.00 3.29
85.0 86.0 1.00 0.41
86.0 87.0 1.00 0.41
87.0 88.0 1.00 1.37
GF09-24 69.7 88.0 18.30 15.26 3.36 0.10
GF09-25
GF09-25 119.0 120.0 1.00 0.81 1.17 0.03
131.0 132.0 1.00 1.371
132.0 133.0 1.00 12.000
133.0 134.0 1.00 0.617
GF09-25 131.0 134.0 3.00 2.43 2.17 0.06
136.0 137.0 1.00 3.43
Hole ID From (m) To (m) Core Width (m) Zone True Width (m) Assay grams Au/t Assay ounce Au/ton
137.0 138.0 1.00 1.99
GF09-25 136.0 138.0 2.00 1.62 2.71 0.08
151.0 152.0 1.00 0.96
152.0 153.0 1.00 2.13
153.0 154.0 1.00 0.82
GF09-25 151.0 154.0 3.00 2.43 1.30 0.04
GF09-26
GF09-26 77.0 78.5 1.50 1.65 1.34 0.04
120.4 121.4 1.00 1.10
121.4 122.4 1.00 0.69
122.4 123.4 1.00 4.53
123.4 124.4 1.00 0.62
124.4 125.4 1.00 0.55
GF09-26 120.4 125.4 5.00 4.47 1.49 0.04
131.9 132.9 1.00 1.30
132.9 133.9 1.00 0.96
GF09-26 131.9 133.9 2.00 1.79 1.13 0.03
161.9 162.9 1.00 0.62
162.9 163.9 1.00 2.19
163.9 164.9 1.00 2.06
164.9 165.9 1.00 1.78
165.9 166.9 1.00 1.92
166.9 167.9 1.00 2.47
167.9 168.9 1.00 1.10
168.9 169.9 1.00 1.99
169.9 170.9 1.00 1.58
GF09-26 161.9 170.9 9.00 8.05 1.74 0.05
175.5 177.0 1.50 0.82
177.0 178.5 1.50 2.06
178.5 180.0 1.50 2.19
GF09-26 175.5 180.0 4.50 4.03 1.69 0.05
GF09-26 194.5 196.0 1.50 1.34 1.44 0.04
GF09-27
GF09-27 84.5 86.0 1.50 1.38 6.86 0.20
GF09-27 88.6 89.1 1.50 1.38 3.77 0.11
99.5 101.0 1.50 0.82
101.0 102.5 1.50 1.37
102.5 104.0 1.50 2.13
Hole ID From (m) To (m) Core Width (m) Zone True Width (m) Assay grams Au/t Assay ounce Au/ton
GF09-27 99.5 104.0 4.50 4.13 1.44 0.04
110.8 111.8 1.00 2.67
111.8 112.8 1.00 3.09
GF09-27 110.8 112.8 2.00 1.83 2.88 0.08
GF09-27 116.4 117.2 0.80 0.73 1.10 0.03
GF09-28
95.3 96.3 1.00 2.26
96.3 97.3 1.00 61.44
97.3 98.3 1.00 8.37
GF09-28 95.3 98.3 3.00 2.53 24.02 0.70
GF09-28 109.3 110.0 0.70 0.59 1.10 0.03
GF09-29
57.8 58.8 1.0 2.606
58.8 59.8 1.0 4.320
59.8 60.8 1.0 8.572
60.8 61.8 1.0 5.760
GF09-29 57.8 61.8 4.00 3.24 5.31 0.15
UTM GRID NAD 83
Hole ID T.D. Northing Easting Elevation Azimuth Inc. Degrees
GF09-24 122.00 5373012.50 551070.00 291.51 270.00 -58.00
GF09-25 275.00 5372962.31 551120.39 290.93 270.00 -63.00
GF09-26 248.00 5372862.48 551120.08 290.77 270.00 -60.00
GF09-27 146.00 5372887.47 551119.86 291.22 270.00 -60.00
GF09-28 128.00 5372937.46 551096.34 291.11 270.00 -58.00
GF09-29 134.00 5372962.63 551069.54 290.84 270.00 -58.00
All assay work was completed by Polymet Labs of Cobalt, Ontario, which is ISO 9001:2000 certified in North America.
This press release has been reviewed and approved for release by Richard F. Nanna, Professional Geologist, Apollo's Senior Vice-President, Exploration and Development and designated "Qualified Person" under NI 43-101. All drill assay results for the Grey Fox property are available on the Apollo website at www.apollogold.com .
Apollo Gold Corporation
Apollo is a gold mining and exploration company which operates the Black Fox mine in Ontario, Canada and the Huizopa project, an early stage exploration project in the Sierra Madres in Chihuahua, Mexico. Apollo also owns the Montana Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, in Montana, which was placed on care and maintenance on April 30, 2009.
Apollo Gold Announces Entry into Letter of Intent to Sell Montana Tunnels Mining, Inc.
Apollo Gold Corporation (“Apollo”) (TSX: APG) (NYSE Amex: AGT) is pleased to announce that it has entered into a letter of intent with Elkhorn Goldfields LLC (“Elkhorn”) pursuant to which Elkhorn has agreed to purchase all the outstanding capital stock in Montana Tunnels Mining, Inc., an indirect wholly owned subsidiary of Apollo (“Montana Tunnels”), which includes the 50% interest held by Montana Tunnels in the joint venture agreement with Elkhorn Tunnels, LLC (an affiliate of Elkhorn), the Diamond Hill mine and mill and any and all ancillary assets for a purchase price of US$9 million, payable as described below. The Montana Tunnels mine has been on care and maintenance since April 30, 2009.
R. David Russell, President & CEO of Apollo, and Patrick Imeson, Chairman of Elkhorn Tunnels, LLC, jointly state, “The working relationship as joint venture partners at Montana Tunnels has been a great working relationship over the last 3.5 years and also financially positive for both companies.” Mr. Imeson further states, “Elkhorn Tunnels has good synergies with other owned mining assets located near Montana Tunnels, which will add to its ultimate financial plan. Elkhorn Tunnels looks forward to reinitiating the Montana Tunnels mine in the near future.”
The terms of the letter of intent provide for staged cash payments in the aggregate amount of US$5 million payable over a 7-month period, of which a non-refundable deposit of $250,000 was paid on or about October 19, 2009. The payment schedule provides for two additional non-refundable payments of $250,000 each to be paid no later than November 25, 2009 and December 25, 2009 (the “Non-Refundable Payments”), followed by three separate payments of $250,000 payable on January 25, 2010, February 25, 2010, and March 25, 2010, a payment of $1,500,000 payable on April 30, 2010 and a payment of $2,000,000 payable on May 31, 2010 (collectively, including the Non-Refundable Payments, the “Cash Purchase Price”). The letter of intent provides that any missed scheduled payment will result in the termination of the letter of intent (unless otherwise negotiated) and retention by Apollo of the Non-Refundable Payments. The balance of the purchase price in the amount of US$4 million is payable through a 4% net smelter royalty (“NSR”) with payments commencing coincident with the start of production and to be paid from production until such time as a total of US$4 million is paid. Upon full payment of the Cash Purchase Price, title to the capital stock of Montana Tunnels will be conveyed to Elkhorn, subject to the NSR. In addition, Apollo and Elkhorn have agreed that they will review other property owned by Montana Tunnels (outside of the current open pit operations and any expansions of the open pit, including the “M-Pit” 1) for future exploration possibilities and that, at Apollo’s option, the parties may form a joint venture to pursue such exploration possibilities.
Based on the foregoing, the parties have agreed to move forward with the preparation of definitive transaction documents to finalize the transaction.
Apollo Gold Corporation
Apollo is a gold mining and exploration company which operates the Black Fox mine in Ontario, Canada and the Huizopa project, an early stage exploration project in the Sierra Madres in Chihuahua, Mexico. Apollo also owns the Montana Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, in Montana, which was placed on care and maintenance on April 30, 2009.
About Elkhorn
Elkhorn Goldfields LLC is a privately held mining and exploration entity, with projects located primarily in Montana and Colorado, including the fully permitted Elkhorn Mine.
If you look at the 2yr chart, you will see that the range we are trading in now, is a key resistance area. I see the trading activity of recent to be healthy as well as positive. Just check the Accumulation indicator and the on-balance indicator. Both up big...good things comin imo. These low vol drops are also indicative of a big move coming. All in my honest opinion.
Right, it takes time for some of these stocks to move up. Its good to hold at least 10 stocks or holdings in ones portfolio and it takes time to build wealth 3 to 5 years.
I got in AGT and POT at about the same time. Today I am just a little over 100% on both and took some profits on POT. I ahve had to tweek AGT a little bit adding some here and there to get that .276 average actually averaged up once cause I thought we were on our way. Some how I believed Agt was good for 4 to 500 % gain by now but it looks like I am going to have to hold for awhile longer,seem to be stuck in the 50s and can't get out. This thing is worth way more than that,I guess not enough peeps know about it and we have to get over a buck for the institutions to get interested. I am not complaining, I am just saying it is good and should be way up from here. Lets go guys.
Paidmyway
Right, and as gold goes so do we.
Soon as AGT trades through .7, stock should start to move rapidly and quickly with little resistance. BTW, .70 was the multi yr high for AGT...And the churn in upper .50's is looking very healthy and once it is over, it will be time to churn through .60-.75, then smoother sailing IMHO.
Be well.
Followers
|
22
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
567
|
Created
|
02/07/04
|
Type
|
Free
|
Moderators |
[ Stock Quotes ]
APG : TSX | AGT : AMEX
Apollo Gold is involved in the acquisition, exploration and development of gold deposits; ranging from initial metals exploration to gold producing operations. The Company is currently engaged consecutively in all 3 phases of gold mining.
Our current objectives are to commence mine construction at our Black Fox Project, drilling and road construction at our Huizopa Project, and to continue profitable production at the Montana Tunnels Mine. In addition, we continue to evaluate potential acquisition and exploration prospects.
http://www.apollogold.com/en/blackfox.htm
http://www.apollogold.com/en/investors_company.htm
http://www.apollogold.com/en/investors_management.htm
http://www.apollogold.com/en/investors1m/presentations/091409dgf.pdf
The Daily View
Another Close Up Daily View
The Big Picture Weekly View
Add Your Own Indicators Here
http://stockcharts.com/charts/gallery.html?AGT
http://quotes.barchart.com/quote.asp?sym=agt&what=quote
Time/Date/Buys/Sells
http://ih.advfn.com/p.php?pid=trades&cb=1216560895&symbol=AMEX:AGT
Candlestick Analysis
http://www.zecco.com/blogs/itradestations_blog/Candlestick-Analysis.aspx
Learning and Teaching Resources for Investing in the Markets
http://investorshub.advfn.com/boards/board.asp?board_id=11294
http://stockcharts.com/school/doku.php?id=chart_school
http://www.candlesticker.com/Cs05.asp
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |