Apollo Consolidated (ASX: AOP) in a fascinating change of direction from biotechnology, plans to acquire West African gold exploration assets through a deal to acquire unlisted Aspire Minerals.
Aspire holds rights to over 3,000 square kilometres of Birimian greenstone belts in northern and central Cote d"Ivoire and has spent $400,000 to date on exploration.
The lead projects are in close proximity to Perseus Mining's (ASX: PRU) one million ounce Sissingue Project.
The Aspire acreage covers three projects (Seguela, Tengrela and Korhogo) with strong gold anomalies defined in surface and trench sampling, artisinal workings.
Geochemical sampling programs are continuing.
Exploration permits have yet to be granted, however the Energy and Mines Minister are known to be supportive of increasing production of gold.
Seguela is a 920 kilometre, two permits project where early stage trench results returned 10 metres at 2.80g/t gold. Korhogo is a 1,000 square kilometre permit along strike from Randgold's 4.3 million ounce Tongon Gold Project and Griffin Mineral's 1.5 million ounce Banfora Gold Project.
Tengrela West covers 1,000 kilometres adjoining Perseus' Sissingue discovery.
Interestingly, the projects have seen limited exploration and no drilling. There are known to be walk up drill targets on the lead Seguela project.
Subject to shareholder approval, Apollo will issue 100 million fully paid shares to acquire 100% of Aspire plus performance based shares. This will be via a prospectus.
The company will need to comply with Chapters 1 and 2 of the ASX Listing Rules and raise $2 million. The change to minerals exploration company may require the company to be reinstated to quotation after approvals.
While early days, the deal has the propensity to change the valuation dynamics favourably for Apollo Consolidated.