Apollo Gold enters into binding agreement with St. Andrew Goldfields.(IN BRIEF)(Brief article)

With its Black Fox project 64 kilometres east of Timmins slated to begin production by early 2009, Apollo Gold Corporation has officially entered into a binding asset purchase agreement with St. Andrews Goldfields.

The agreement follows up on a letter of intent announced in March, and finds St. Andrews agreeing to sell its Stock Mill complex for $20 million. The sale includes the mill, related equipment, infrastructure, laboratory and tailings facilities. The mill is located 28 kilometres west of the Black Fox site.

Apollo has commissioned the U.K.-based GBM Mineral Engineering Consultants Ltd. to pursue a study on what would be required to upgrade the mill's throughput from 1,100 tonnes per day to 1,500 tonnes per day.

The Black Fox project is expected to produce 150,000 ounces of gold every year for the duration of its nine-year operational life, between the re-opening of the former Glimmer Mine and the creation of a new open pit.

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