- Alto Metals (AME) has secured firm commitments to raise $5.5 million to fast track works at its Sandstone Gold Project
- Shares will be issued at a price of 7.5 cents- representing an 11.8 per cent discount to Alto’s last trading price of 8.5 cents
- Funds from the placement will be used to advance exploration at the company’s flagship Sandstone Gold Project in Western Australia
- The company also intends to seek shareholder approval to raise an additional $900,000 through a placement to certain directors of Alto
- Alto Metals shares have dropped 1.18 per cent, last trading for 8.4 cents
Alto Metals (AME) has secured firm commitments to raise $5.5 million to fast track works at its Sandstone Gold Project.
Under the placement, around 74.4 million shares will be issued to institutional, sophisticated and professional investors at a price of 7.5 cents each. This represents an 11.8 per cent discount to Alto’s last trading price of 8.5 cents on Wednesday, September 16.
“We are extremely pleased with the overwhelming interest in the Placement to existing and new investors, including a number of resource focused institutional investors, which is strong endorsement of the potential of our Sandstone Gold Project,” Managing Director Matthew Bowles said.
Funds from the placement will be used to advance exploration at the company’s flagship Sandstone Gold project in Western Australia. Exploration works will include 500 metres of reverse circulation (RC) drilling to test for high grade gold mineralisation.
Additionally, the company plans to conduct a further 25,000 metres of RC drilling to test additional targets along the three-kilometre Lord’s corridor and regional targets including Vanguard, Indomitable and Chance.
Alto’s project covers 800 square kilometres of the historic Archaean Sandstone Goldfield and has produced over 1.3 million ounces of gold since the 19th Century.
The company intends to seek shareholder approval to raise an additional $900,000 through a placement. Non Executive Chairman Richard Monti and Managing Director Matthew Bowles will each invest $50,000 and Non Executive Director Terry Wheeler will invest as much as $800,000.
Alto is subject to an off-market takeover bid from Habrok, to acquire all Alto shares at seven cents. However, the placement shares will not be subject to the offer unless Habrok elects to extend the offer and receives necessary approval from ASIC. The offer is scheduled to lapse at 7:00 pm EST on September 30.
Alto Metals shares have dropped 1.18 per cent, last trading for 8.4 cents at 3:30 pm AEST.