Apollo Minerals Raises A$6.5m Following 200% Surge- Buy, Hold, or Take Profits?

Apollo Minerals secures permit win and $6.5m raise as tungsten tightens

Apollo Minerals (ASX: AON) surged more than 200 per cent this week after France’s highest court reinstated its exploration permit at the Couflens tungsten-gold project. The company followed up by raising A$6.5 million to accelerate drilling and feasibility work at the historic Salau mine, which produced nearly one million tonnes at 1.5% tungsten oxide before closing in 1986. That grade is roughly five times the global average.

For investors, the timing looks attractive. China controls more than 80 per cent of global tungsten production and implemented strict export controls in February 2025, sending prices up over 200 per cent this year. With Europe scrambling for a secure supply, Apollo now holds a potentially strategic asset with funding to prove it up.

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Apollo Minerals Locks In Funding to Restart Historic Tungsten Mine

The A$6.5 million placement gives Apollo Minerals the capital to move quickly on Couflens. Funds will go towards an accelerated drilling program, feasibility studies, and team expansion in France. The permit, previously annulled in 2019 on procedural grounds, has now been reinstated for five years by the Conseil d’Etat, France’s highest administrative court.

This clears a major legal hurdle that had stalled the project for nearly six years. Apollo Minerals owns 100 per cent of Couflens, meaning it captures full upside without needing joint venture negotiations. The historic Salau mine remains open at depth, with previous drilling confirming the mineralised system continues below existing development.

Managing Director Neil Inwood said the project has the potential to become a major strategic supplier of tungsten to French and European industries. With a funded runway secured, Apollo Minerals can now focus on proving up the resource rather than chasing capital.

Why Tungsten Matters Now

China’s dominance over tungsten has become a serious supply chain risk for Western nations. The country produces over 80 per cent of global output and implemented export controls in February 2025 that have slashed shipments by 70 per cent for key products like ammonium paratungstate.

Tungsten prices have surged more than 200 per cent in 2025, hitting 12-year highs in European spot markets. The metal’s extreme melting point makes it essential for defence, aerospace, and semiconductor applications where no substitute exists.

Europe has listed tungsten as a critical raw material, and the EU Critical Raw Materials Act is actively seeking non-Chinese alternatives. A permitted, high-grade tungsten project in France fits that mandate perfectly.

The Investor’s Takeaway – Buy or Wait?

The bull case is straightforward. Apollo Minerals holds a strategic asset with secured funding, a reinstated permit, and macro tailwinds that are the strongest in decades. The 1.5% tungsten oxide grade at Salau is exceptional by global standards.

However, investors should weigh the risks carefully. A third-party mining company has lodged an appeal against the permit reinstatement. The project currently relies on historical French data, with drilling now focused on establishing a modern JORC-compliant resource estimate. The capital raise also brings dilution for existing shareholders.

At a market cap of around A$38 million, Apollo is priced as a speculative opportunity. The stock has already run hard this week, and some pullback would be normal after a 200 per cent gain. For patient investors comfortable with early-stage risk, the combination of asset quality and macro support makes this worth watching. Conservative investors may prefer to wait for the appeal outcome or a post-raise pullback before building a position.