Apollo Silver closes initial $25 million tranche of private placement

Apollo Silver Corp. (TSX.V: APGO, OTCQB: APGOF, Frankfurt: 6ZF0) closed the first tranche of its private placement offering, raising $25.1 million through the issuance of 6,981,707 units at $3.60 per unit.

The Vancouver-based company's total offering amounts to $26.8 million, with a final tranche of 455,973 units expected to close soon for additional proceeds of $1.6 million.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional shares at $5.50 each for 24 months from closing. The company may accelerate warrant expiry if shares trade at $7.50 or higher for 10 consecutive trading days after a four-month period.

Apollo Silver paid $826,549 in finder's fees to BMO Capital Markets, Canaccord Genuity, Red Cloud Securities Inc., Research Capital Corporation and SCP Resource Finance in connection with the first tranche.

Company insiders participated in the offering, purchasing 405,557 units for $1.5 million. This represents a related party transaction under securities regulations but qualifies for exemptions from valuation and minority shareholder approval requirements.

The company plans to use proceeds to advance its Calico Silver Project in California, support community relations at the Cinco de Mayo Silver Project in Mexico, cover property maintenance costs, and for general corporate purposes.

Securities issued carry a four-month hold period and remain subject to TSX Venture Exchange approval. The shares were not registered under U.S. securities laws and cannot be offered or sold in the United States without proper registration or exemption compliance.

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