October 23, 2009 (FinancialWire) — Apollo Gold Corp. (TSX: APG) (AMEX: AGT) has entered into a letter of intent with Elkhorn Goldfields LLC, which has agreed to purchase all the outstanding capital stock in Montana Tunnels Mining, Inc., an indirect wholly owned subsidiary of Apollo, which includes the 50% interest held by Montana Tunnels in the joint venture agreement with Elkhorn Tunnels, LLC (an affiliate of Elkhorn), the Diamond Hill mine and mill and all ancillary assets for a purchase price of $9 million.

The Montana Tunnels mine has been on care and maintenance since April 30, 2009.

The terms of the letter of intent provide for staged cash payments in the aggregate amount of $5 million payable over a seven-month period.

The parties have agreed to move forward with the preparation of definitive transaction documents to finalize the transaction.

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