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Alto Metals Ltd

Alto Metals board recommends shareholders reject Middle Island offer

The takeover offer is for five Middle Island shares for every one Alto share.

paper with REJECTED on it
Alto’s objective is to delineate a high grade multi-million ounce ore body at Sandstone

Alto Metals Ltd (ASX:AME) has released a letter to shareholders today starting that is board unanimously recommends that shareholders reject the takeover offer from Middle Island Resources (ASX:MDI).

The letter said: “Middle Island’s understanding of the value of Alto has clearly increased through their presence in the Sandstone Goldfield.

“Your directors believe that Middle Island now recognises the inherent value of Alto’s Sandstone Project and the 818 square kilometres of the historic Archaean Sandstone Goldfield controlled by Alto, which your directors have long believed to be one of the most prospective gold provinces in Western Australia today.”

Alto’s three largest shareholders don’t intend to accept

The board believes the offer fails to recognise Alto’s unrealised potential and that Middle Island needs Alto, however Middle Island’s proposal offers little benefit to Alto shareholders.

Alto’s three largest shareholders, who collectively own or control 32.12% of the company’s shares, have indicated that they do not intend to accept the offer.

READ: Alto Metals to potentially fast-track into gold developer with Middle Island takeover bid

Since acquiring the Sandstone Gold Project in June 2016, Alto has compiled and reviewed a large legacy database ahead of a series of focused exploration and drilling campaigns which commenced in late-2016.

Alto’s initial goal is to delineate a JORC resource of at least 1 million ounces of gold, that can become the basis for a re-establishment of standalone oxide and primary gold mining and milling operations at Sandstone.

Quick facts: Alto Metals Ltd

Price: $0.04

Market: ASX
Market Cap: $8.54 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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