Hi peace, Are you still holding this non performer?
Apollo Gold Announces That Regent Waives Option of Recently Announced Special Notes and Special Warrants Offering
DENVER--(CCNMatthews - Nov 8, 2004) -
Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG)(AMEX:AGT) announced today that following the recently closed US$10.5 million special note and special warrant offering Regent Mercantile Bancorp Inc. has agreed to waive its option granted under the agency agreement to place additional securities thereunder. The proceeds were utilized to pay off the previously announced $3.0 M bridge facility and the remainder of funds to be utilized to further the company mine operations and development projects.
R. David Russell, President and CEO of Apollo Gold stated, "The recently completed special note and special warrant financing has provided funding for Apollo's requirements for the near term to get the Montana Tunnels mine operations into positive cash flow by finalizing the stripping project, to finalize the New Standard Mine development and move the Black Fox feasibility study forward." Mr. Russell also updated the Apollo Gold operations with the following comments. "Apollo Gold will be announcing its third quarter 2004 results within the next week with the expected results of a loss for the quarter. The third quarter performance is expected to be an improvement over the second quarter, with further improvements expected in the fourth quarter. Apollo Gold is looking forward to achieving positive results from the Montana Tunnel mine since recently encountering the primary ore zone within the main ore body. The second key success factor, for the company, is the near term completion of the "New" Standard Mine development and bringing the mine into full production which is expected by the end of December of 2004. With these two key achievements Apollo Gold is looking forward to a positive performance for the first quarter 2005".
Operations Update
-- The Standard mine is on schedule to produce its first gold in November 2004. The new leach pad is complete and loading of run of mine ore onto this pad has commenced along with metal leaching. The metal loaded carbon will be processed at the stripping and gold recovery facility at the nearby Florida Canyon mine.
-- Following the previously announced cut in the mining rate the Florida Canyon mine is still on limited operations and will complete the final loading of the existing heap with metal recovery continuing throughout 2005. Plans for the expansion of the existing Florida Canyon heap are under consideration with a final decision expected in the second quarter 2005.
-- The Montana Tunnels operation is currently performing above expectations with higher than planned mill through-puts due to commissioning of the new crusher and other mill improvements. The anticipated ore grade material in the open pit is close at hand and therefore the higher mill grades can be expected shortly. With a reduction in waste movement, increased grades, higher mill through-put, and good metal prices the Montana Tunnels operation is expected to show improved cash flow in the fourth quarter 2004 followed by positive cash flows in the first quarter 2005.
-- The Black Fox project continues to demonstrate that it will be a significant gold project. The surface and underground drilling programs have recently surpassed 500,000 feet of core drilled. The assay data from these programs has been entered into the data base and currently the resource modeling is underway and a significant addition to the existing mineralized material is expected. A feasibility study will be started shortly that will include both mining the existing open pit reserves of 457,000 ounces of gold, and the new underground material currently under review. Completion of the feasibility study is expected in mid-year 2005.
-- The Huizopa project in Chihuahua, Mexico, is still in the grass roots exploration stage with preliminary field work underway. A base camp has been established and the exploration program is ongoing.
About Apollo Gold
Apollo Gold is a gold mining company with operating mines in Nevada and Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project an early stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico.
About Regent Mercantile Bancorp Inc.
Regent Mercantile Bancorp Inc. operates a successful merchant bank advising and funding, emerging and mid-cap company's in the global Mining and Energy sectors. Incorporated in 1999, Regent operates from its offices in Toronto, Ontario, Canada, and London, U.K.
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