Apollo Gold (TSE:APG), Linear Gold (TSE:LRR), Paying Down Debt

Apollo Gold (TSE:APG) and Linear Gold (TSE:LRR) recently announced they've unwound their Canadian dollar currency hedges in relationship to Apollo's $70 million Black Fox Project Facility Agreement.

After repaying the approximate $8.2 million from unwinding their position, they will use it to pay down debt to about $51.8 million.

The two companies will close their merger at the end of the second quarter of 2010 and at that time will pay down another $10 million to lenders to reduce the debt load to $41.8 million.

R. David Russell, CEO and President of Apollo, said interest payments on the private placement will be reduced by $1.3 million annually as a result of paying down their debt to that level.