Apollo Gold Corporation

Apollo Gold Corporation

January 05, 2005 06:36 ET

Apollo Gold Completes US$6.225 Million First Tranche Unit Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: APOLLO GOLD CORPORATION

TSX SYMBOL: APG
AMEX SYMBOL: AGT

JANUARY 5, 2005 - 06:36 ET

Apollo Gold Completes US$6.225 Million First Tranche
Unit Financing

DENVER, COLORADO--(CCNMatthews - Jan. 5, 2005) -

Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG) (AMEX:AGT)
is pleased to announce the closing of the first tranche of its
previously announced offering (the "Offering") of 10,625,000 units (the
"Units") at US$0.75 per Unit. The Offering is being underwritten on a
best efforts basis. The price of the Units was amended to US$0.75 per
Unit from the previously announced US$0.80 per Unit.

The Company placed today 8,299,999 Units for aggregate gross proceeds of
US$6,225,000 for the first tranche of the Offering. Each Unit consists
of one common share and three quarters (0.75) of one common share
purchase warrant (a "Warrant"). Each Warrant entitles the holder to
purchase one common share of Apollo at an exercise price of US$1.00
until December 31, 2006. The second tranche is expected to be completed
on or about January 10, 2005, (which is earlier than the originally
announced closing date for the second tranche of January 25, 2005).
Apollo has granted the underwriter an option to increase the total size
of the Offering by an additional 1,875,000 Units for a total of up to
12,500,000 Units, such option to be exercisable by the underwriter up to
48 hours prior to the closing of the second tranche.

A shelf registration statement of Apollo has been declared effective by
the U.S. Securities and Exchange Commission ("SEC"), and a prospectus
supplement with respect to the Offering was filed with the SEC on
December 17, 2004. A subsequent prospectus supplement with respect to
the Offering was filed with the SEC on January 3, 2005.

This press release is not an offer of securities for sale in the United
States. The securities described herein may not be offered or sold in
the United States absent registration or an exemption from registration,
and any public offering of securities to be made in the United States
will be made by means of a prospectus that may be obtained from the
Company and that will contain detailed information about the Company and
management as well as financial statements. This press release shall not
constitute an offer to sell or solicitation of an offer to buy in any
jurisdiction where such solicitation or sale would be unlawful.

About Apollo Gold

Apollo Gold is a gold mining company with operating mines in Nevada and
Montana, the Black Fox advanced stage development project in Ontario,
Canada, and the Huizopa Project an early stage exploration project in
the Sierra Madre Gold Belt in Chihuahua, Mexico.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements regarding the agent's option, the
aggregate gross proceeds and the anticipated closing dates are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that the option will be exercised, that the
offering will raise the amounts set forth herein or that the offering
will close on the dates anticipated. Important factors that could cause
actual results to differ materially from these forward-looking
statements include: the results of a due diligence investigation by
potential purchasers, a material adverse change in the Company's
condition, and other factors disclosed under the heading "Risk Factors"
and elsewhere in Apollo documents filed from time to time with the
Toronto Stock Exchange, The American Stock Exchange, The United States
Securities and Exchange Commission and other regulatory authorities.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Apollo Gold Corporation
    Dave Young
    VP Business Development
    720-886-9656 ext. 55 or Toll Free: 877-465-3484
    E-mail: info@apollogold.com
    Web site: www.apollogold.com