Message #5 From:
NewsBot Date: February 10, 2008 08:24:24 PM
Apolo Signs L.O.I. for Nevada Mining Projects
Apolo Gold & Energy Inc. (OTCBB: APLL stock message board forums) has
executed a Letter of Intent with Great American Minerals, Inc. (GAM) of
Salt Lake City Utah, for the acquisition of all of the outstanding shares
of GAM in return for a yet to be determined number of restricted shares of
common stock of Apolo. GAM is a private company located in Salt Lake City,
Utah and the holder of numerous mining claims primarily in Nevada.
The number of restricted shares to be issued by Apolo, which would be
delivered upon the closing of the Definitive Agreement, will be determined
by mutual consent of the parties only after an independent value has been
determined for the assets of GAM being acquired by Apolo. Both parties will
use their best efforts to execute a Definitive Agreement by April 20, 2007,
and close by June 20, 2007.
As a condition of execution of the Definitive Agreement, the most
significant GAM properties shall be evaluated at Apolo's cost for
geological and economic value by a qualified independent third party prior
to a final determination of the number of Apolo shares to be issued to GAM
shareholders.
GAM currently owns over 900 unpatented mining claims, and has Joint
Ventures with Madison Minerals Ltd and Platte River Gold. There are 6
prominent properties located in Nevada and include a diverse asset base of
properties hosting gold and silver, to strategic metal mineral resources
such as vanadium and copper. The properties range from advanced
exploration/development drilling projects to promising exploration targets.
All properties are located in the prolific Battle Mountain - Eureka Trend
in Nevada, also known as the Cortez Trend.
Through a Joint Venture with Madison Minerals, Inc., GAM and Madison have
acquired control of claims and patents for over 5,500 acres on the Battle
Mountain - Eureka Trend in Nevada. GAM has a 40% interest in the joint
venture which has the option of acquiring the property. This Joint Venture
known as the Phoenix Joint Venture is strategically located directly north
of and contiguous with Newmont Mining Corp.'s Phoenix/Fortitude Mine
Development complex which is reported to host significant mineable reserves
of gold.
Other projects owned by GAM include the Treasure Hill Project, located in
White Pine County between Ely and Eureka, Nevada; Black Kettle Vanadium
Project located 8 miles south of Carlin in Elko County, Nevada; Modoc
Project, located 3 miles from Newmont's Phoenix-Fortitude property and
directly adjacent to the Phoenix JV Property; UNR Project, located in the
Eureka Mining District; and the Platte River JV Project.
GAM also owns claims in the High Grade District in the Warner Mountains,
approximately 30 miles northeast of Alturas in Modoc County, in the
northeast corner of California. This is a gold occurrence that has had very
little exploration to date.
Regarding the Treasure Hill Project, current drilling data indicates
significant silver bearing mineralization of high grade material.
Additional drilling will be required on this property to determine its
potential.
Prior to the closing of the Definitive Agreement, GAM will provide evidence
of a firm commitment of financing in the amount of $8,000,000. A portion of
these funds would be allocated to the retirement of debentures currently
outstanding in GAM. The balance will provide sufficient financing to retire
all outstanding obligations of both Apolo and GAM, and provide working
capital of almost $4,000,000 for work program commitments and general
working capital. As a further condition to closing, the parties have agreed
to the election of a revised board of directors.
Apolo also advises that it has signed an Agreement with Atna Resources Ltd
wherein Apolo will execute a quit claim and return its rights regarding the
Beowawe property in Nevada to Atna Resources Ltd. As a condition of this
Agreement, Apolo has agreed to reimburse Atna $113,520 of expenditures made
on its behalf and to issue to Atna 2,200,000 restricted common shares in
lieu of unfulfilled work commitments for the past year. Upon settlement of
the foregoing, Apolo will be released from further obligations regarding
the Beowawe property.
The Company is awaiting a geological consultants report on its NUP property
in Sumatra, Indonesia prior to determining its continuing program for 2007.
APOLO GOLD & ENERGY INC
For further information, please contact: Brant W. Little B.B.A. Advisor to the Board Tel: 604-687-4150 Fax: 604-687-4155 e-mail: brantlittle@yahoo.ca Website: www.apologoldandenergy.com
