Apollo Silver closes $15M first tranche of financing

Executive Summary

• Apollo Silver Corp. has closed the first tranche of its previously announced upsized $27.5 million non-brokered private placement, issuing 3 million units at $5.00 per unit for $15 million in aggregate gross proceeds.
• The tranche features substantial insider and major shareholder participation, including a $12.5 million subscription from Eric Sprott and $2.355 million from company insiders.
• Net proceeds will be allocated to advancing the Calico silver project in California, supporting community relations at the Cinco de Mayo project in Mexico, covering property maintenance, and general corporate purposes.
• The offering remains subject to final TSX Venture Exchange approval, with a final tranche expected to include a fund managed by Jupiter Asset Management.

Key Details

• Financing Structure & Proceeds: Non-brokered private placement; first tranche closed for $15M gross proceeds (3M units at $5.00/unit); total offering size is $27.5M.
• Key Shareholder Participation: Eric Sprott (via 2176423 Ontario Ltd.) subscribed for 2.5M units ($12.5M); company insiders subscribed for 471,000 units ($2.355M).
• Ownership Impact (Sprott): Increased from ~6.5% non-diluted / 8.7% partially diluted pre-offering to ~10.3% non-diluted / 15.8% partially diluted post-offering.
• Warrant Terms: Each unit consists of one common share and one common share purchase warrant; warrants entitle holder to purchase one share at $7.00 per share for 24 months from closing.
• Finders' Fees: $312,500 total, paid via issuance of 62,500 units to Research Capital Corp. (warrants on these units are non-transferable).
• Use of Proceeds: Advance Calico silver project (San Bernardino, CA); support community relations at Cinco de Mayo silver project (Chihuahua, Mexico); cover property maintenance costs at both projects; general corporate purposes.
• Regulatory & Hold Status: First tranche subject to final TSX-V approval; final tranche pending additional regulatory submissions and TSX-V acceptance; 4-month hold period applies to securities issued in the first tranche.
• Regulatory Exemptions: Insider participation constitutes a related party transaction under MI 61-101, exempt from valuation and minority shareholder approval requirements as shares are not listed on a specified market and fair market value does not exceed 25% of market cap.

Notable Quotes

• "The participation of a key shareholder and Apollo Silver insiders reflects strong alignment around the strategic value of primary silver assets in tightening silver markets," said Ross McElroy, President and CEO. "This financing further reinforces our positioning as a silver-focused company advancing large-scale assets in stable jurisdictions."