Apollo Minerals has signed an agreement to purchase a 75% interest in the Aurenere tungsten-gold project in northern Spain.
The Aurenere project is contiguous with Apollo’s Couflens project in France, providing an extension of strike along a highly prospective corridor for tungsten and gold.
The acquisition increases the company’s land position in the Pyrenees region to 97km².
Under the terms of the agreement, Apollo will acquire 75% of the share capital of NeoMetal Spania, which holds the Aurenere project, by making an upfront payment of €100,000 and an additional €150,000 after securing the investigation permit for the project.
Covering a 55km² area adjacent to the Couflens project, the investigation permit application was submitted by NeoMetal in March 2016 and is pending grant.
Once the transaction is closed, Apollo Minerals UK will become the manager of NeoMetal.
The company is also required to invest €500,000 and €2.5m within three years and five years of the date of granting of the investigation permit, respectively.
Once the company completes the €2.5m investment, it will continue to incur spending to the completion of a feasibility study on the Aurenere project.
Following a decision to mine, Apollo may be required to fund a portion of the funding needed by NeoMetal to begin production.
The transaction comes after Apollo carried out work programmes at the Couflens project, resulting in an increased understanding of the geology and exploration potential of the area.
Based on field campaigns conducted within the Couflens licence area, it was determined that there is a presence of widespread tungsten and high-grade gold.
Earlier this month, the company reached a deal to acquire the remaining 20% interest in the Couflens project, which includes the historical Salau mine.