Apollo Silver Closes First Tranche of $27.5 Million Private Placement Offering Including $2.355 Million Investment from Insiders

Core Viewpoint - Apollo Silver Corp. has successfully closed the first tranche of its upsized non-brokered private placement, raising a total of $15,000,000 by issuing 3,000,000 units at a price of $5.00 per unit [1] Group 1: Offering Details - The first tranche included significant participation from Eric Sprott, who subscribed for 2,500,000 units, contributing $12,500,000 to the total proceeds [2] - Insiders of Apollo Silver also participated in the first tranche, acquiring a total of 471,000 units for gross proceeds of $2,355,000 [7] - The offering consists of units that include one common share and one common share purchase warrant, with each warrant allowing the purchase of a share at an exercise price of $7.00 for 24 months [9] Group 2: Shareholder Impact - Following the first tranche, Eric Sprott's ownership increased to 6,188,889 shares and 3,888,889 warrants, representing approximately 10.3% of the outstanding shares on a non-diluted basis and 15.8% on a partially-diluted basis [4] - Sprott's long-term investment strategy may involve acquiring additional securities or selling existing ones depending on market conditions [5] Group 3: Use of Proceeds - The net proceeds from the offering will be utilized to advance the Calico Silver Project in California, support community relations at the Cinco de Mayo Silver Project in Mexico, cover ongoing property maintenance costs, and for general corporate purposes [11][12] Group 4: Regulatory and Market Context - The first tranche remains subject to final approval from the TSX Venture Exchange [8] - The offering is classified as a "related party transaction" under Multilateral Instrument 61-101, with exemptions from certain requirements due to the market capitalization of the company [7]