- Alto Metals (AME) receives commitments to raise $7 million to accelerate exploration at the Sandstone gold project in Western Australia
- Through a placement, 77.8 million shares will be issued to institutional, professional and sophisticated investors at 9 cents each to raise an initial $5.46 million
- Subject to shareholder approval, the balance of 17 million shares will be issued on the same terms to directors of the company
- Alto plans to put the funds towards the next phase of exploration and drilling with the aim of updating the current 331,000-ounce Mineral Resource
- Shares have been trading 4.7 per cent lower at 10 cents
Alto Metals (AME) has received commitments to raise $7 million to accelerate exploration at the Sandstone gold project in Western Australia.
The company said it received “overwhelming” interest in the placement which will see 77.8 million shares issued to institutional, professional and sophisticated investors at 9 cents each to raise an initial $5.46 million.
Subject to shareholder approval, the balance of 17 million shares will be issued on the same terms to directors of the company.
The company is in the process of preparing the relevant notice of meeting documentation and necessary steps to convene a shareholder meeting as soon as possible.
With a focus on uncovering further discoveries and undertaking resource growth at the Sandstone project, Alto plans to put the funds towards the next phase of exploration and drilling.
This program of work is set to include reverse circulation drilling along the contact of the Lords granodiorite to test for repeat lodes along strike and at depth.
It will also include step-out drilling along both the Vanguard and Indomitable trends.
Moreover, the company said the strengthened balance sheet will enable first pass drilling at numerous regional targets outside of the Alpha domain.
Alto is continuing work to update the current 331,000-ounce Mineral Resource which it expects to complete by the March 2022 quarter.
Assays are pending for over 80 reverse circulation holes across the Lord Henry, Vanguard and Indomitable prospects which should be received over the coming weeks.
Shares were trading 4.7 per cent lower at 10 cents at 4:10pm AEDT.