Apollo acquires stake in French tungsten project

Ian Middlemas-led explorer Apollo Minerals has entered into an agreement to acquire a major stake in a tungsten-copper-gold project in France, in a cash and scrip deal worth up to $13.5 million.

Apollo, which shifted its headquarters from Sydney to Perth last year, will acquire an 80 per cent stake in the Couflens project through a share sale agreement with Ariege Tungstene SAS.

Apollo will pay an initial $250,000 in cash and issue 15 million shares to Ariege, plus a further $500,000 cash and 65 million performance shares subject to a number of conditions.

At Apollo’s opening price of 16 cents each, the deal is worth $13.5 million if all performance shares are issued.

NSW-based Variscan Mines holds the remaining 20 per cent stake in Couflens, and will be free-carried until a definitive feasibility study on the project is completed, or $35 million in exploration spending has been reached.

Variscan managing director Greg Jones said the company was excited to be joined by Apollo in the exploration and potential development of Couflens.

“The acquisition of Ariege Tungstene by Apollo brings a third ASX-listed company into France and provides a clear vindication of the quality of Variscan project generation and the company’s investment into the country,” he said.

Apollo shares were 15.6 per cent higher on the news to 18.5 cents each, at 10:45am.