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Alto Metals in trading halt ahead of capital raising news

The companies securities will remain in trading halt until the beginning of trade on Monday, May 6, or when an announcement is made to the market.
Australian map and upward price graph
In March Alto received an all scrip off-market takeover offer from Middle Island Resources

Alto Metals Ltd (ASX:AME) is in a trading halt pending the release of information in relation to a capital raising.

The trading halt will end on the beginning of trade on Monday, May 6, 2019, or when an announcement is made to market, whichever occurs earliest.

Shares last traded at 4 cents.

READ: Alto Metals board recommends shareholders reject Middle Island Offer

The company released a letter to shareholders yesterday stating that Alto’s board unanimously recommends 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 Archean Sandstone Goldfield controlled by Alto, which your directors have long believed to be one of the most prospective gold provinces in Western Australia today.”

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

The board believes the offer fails to recognise Alto’s unrealised potential and that Middle Island needs Alto.

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.

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Alto Metals Ltd Timeline

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