Proactive Investors - Run By Investors For Investors

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.

View full AME profile View Profile

Alto Metals Ltd Timeline

Related Articles

Fifield project in NSW
January 11 2019
The company is awaiting assay data which is expected in January 2019.
Thomas Creek porphyry target
February 08 2019
The company is focused on copper, cobalt, gold and nickel prospects on Tasmania's west coast.
October 10 2018
The venture will evaluate potential acquisitions of deposits not limited to manganese but for vanadium and other strategic minerals

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use