Apollo Minerals has signed an agreement to purchase an additional 20% interest in the Couflens project in southern France via the acquisition of 100% of the shares in Variscan France, thereby enabling the company to have complete ownership of the project.
Apollo’s recent field campaigns in the project area have determined the presence of widespread tungsten and high-grade gold reserves.
The company originally acquired an 80% interest in the Couflens project in June last year.
The project is located in the Pyrenees region and covers a total area of 42km². It includes the historical Salau tungsten mine, which is also noted to feature gold upside.
In addition to offering a simplified ownership structure, the transaction is anticipated to allow the company to expedite the development of the project.
Apollo will make an upfront payment of A$200,000 ($156,083) under the arrangement, followed by additional payments in future.
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The total consideration required for the acquisition of the final 20% interest will depend upon the fulfilment of project milestones.
The company will also assume up to €400,000 of Variscan France liabilities as part of the sale.
Apollo has digitised a database consisting of information from historical operations in order to enhance its understanding of the project’s overall potential.
Several field exploration campaigns previously conducted by the company returned gold grades of up to 24.5g/t from rock chip samples.
Furthermore, the field programmes assisted the company with the identification of several anomalies prospective for gold and tungsten.
Apollo tested the samples for tungsten and found grades of up to 8.25%.
The company’s decision to wholly acquire the project follows the results of the initial exploration programme.
Apollo now intends to advance its exploration activities in the area, which will include the definition of a maiden mineral resources estimate for tungsten.
The company is also planning to undertake an initial drilling campaign at the site.