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Alto Metals to raise up to $2.38 million for exploration at Sandstone Gold Project

The company has launched a 1 for 3 non-renounceable pro-rata entitlement offer to eligible shareholders.

Increasing stacks of coins
Alto aims to delineate a 1 million+ ounce gold resource at Sandstone

Alto Metals Ltd (ASX:AME) aims to raise up to $2.38 million in a 1 for 3 non-renounceable rights issue with the majority of funds to be allocated to ongoing exploration, including drilling, at the Sandstone Gold Project in WA.

Shares in the pro-rata entitlement offer to eligible shareholders are priced at 3.6 cents each.

This represents a 10% discount to the last closing price of 4 cents and a 15% discount to the 15-trading-day volume-weighted average price on Wednesday, January 23.

READ: Alto Metals set to add to Sandstone gold bounty with Havilah resource

Alto expects to add ounces to the Sandstone project through an imminent resource estimate for the Havilah deposit.

Sandstone’s existing resource is 261,000 ounces and the company is aiming to define at least 500,000 more ounces this year as part of its overall strategy to delineate more than 1 million ounces.

READ: Alto Metals eyes 1 million+ gold resource at Sandstone to recommence mining

This strategy also includes re-establishing gold mining and milling operations at the project in the East Murchison Mineral Field.

Offer includes option

Each share in the offer comes with an unquoted free-attaching option that has an exercise price of 7 cents and expires 18 months later.

The offer, which closes at 8pm EST on February 14, could introduce more than 66 million new shares and 33 million options to those in circulation.

Any new shares and options not taken up will be offered to eligible shareholders in a shortfall offer on the same conditions.

These can be issued at the directors’ discretion up to February 19 before the securities are added to quotation on February 21 and begin to be traded normally from February 25.

READ: Alto Metals Ltd acquiring rights to shallow gold at Sandstone project

Alto expects to direct up to $1.967 million of the funds towards exploration, keeping $369,000 for working capital requirements and directing $40,000 to offer costs.

Quick facts: Alto Metals Ltd

Price: 0.037 AUD

ASX:AME
Market: ASX
Market Cap: $7.9 m
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Alto Metals adding ounces and grade across multiple deposits at Sandstone...

Alto Metals Ltd (ASX:AME) managing director Dermot Ryan summarises for Proactive Investors the past 24 months of exploration and metallurgical test works at the approximately 800 square kilometre Sandstone Gold Project in Western Australia. There is currently a defined a gold resource of...

on 6/12/18

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