Apollo Silver closes first tranche of $15 million private placement

Apollo Silver Corp. (TSX.V: APGO, OTCQB: APGOF) completed the first tranche of its private placement offering, raising $15 million through the issuance of 3 million units at $5.00 per unit, according to a company statement.

Eric Sprott, one of the company's largest shareholders, purchased 2.5 million units for $12.5 million through his corporation 2176423 Ontario Ltd. The transaction increased Sprott's ownership to approximately 10.3% of outstanding shares on a non-diluted basis, up from 6.5% prior to the offering.

Company insiders, including directors and officers, participated in the first tranche by purchasing 471,000 units for $2.355 million. The insider participation constitutes a related party transaction under regulatory guidelines but qualifies for exemptions from valuation and minority shareholder approval requirements.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional shares at $7.00 per share within 24 months of closing.

Apollo Silver paid $312,500 in finder's fees, including 62,500 units issued to Research Capital Corporation. A fund managed by Jupiter Asset Management has subscribed for additional units expected to be issued in a subsequent tranche pending regulatory approvals.

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.

The securities are subject to a four-month hold period and the offering remains subject to final approval from the TSX Venture Exchange.

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