Apollo Gold Completes Sale of Montana Tunnels
Denver, Colorado February 2,2010 Apollo Gold Corporation
( Apollo ) (NYSE Amex: AGT; TSX: APG) has completed the sale of
Montana Tunnels Mining, Inc. ( MTMI ) to Elkhorn Goldfields LLC
( Elkhorn ). Prior to the completion of this sale, MTMI was a wholly
owned subsidiary of Apollo and owned Apollos 50% joint venture
interest in the Montana Tunnels mine and mill (located near Helena,
Montana), the
Diamond Hill mine and related mill and ancillary
assets.
The sale was completed on substantially the same terms as set forth
in the letter of intent with Elkhorn as described in Apollos
December 10, 2009 news release. In consideration for the sale of
MTMI, Apollo received all of certain promissory notes held by Elkhorn
and certain investors in Elkhorn or its affiliates from Calais
Resources, Inc., Calais Resources Colorado, Inc. (together with
Calais Resources, Inc., Calais ) and Aardvark Agencies, Inc.
( Aardvark ) with an aggregate outstanding balance of approximately
$9.5 million.
R. David Russell, President and Chief Executive Officer of Apollo,
said, We congratulate Patrick Imeson and Elkhorn for its acquisition
of the Montana Tunnels assets. For Apollo, this completion of the sale
allows us to focus on gold production at our flagship Black Fox Mine
in Canada and exploration at the adjoining Grey Fox and Pike River
projects and at the Huizopa gold-silver joint venture project in
Mexico.
Patrick W.M. Imeson, Chairman of Elkhorn, said, We are very pleased
to conclude this transaction. Apollo has been an excellent partner in
our recent joint venture. We see this transaction as an integral step
in Elkhorns development strategy of regional producing assets,
including expansion of the M Pit at Montana Tunnels and the
development of the Elkhorn Mine near Boulder, Montana.
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