Advanced gold explorer Alto Metals (ASX:AME) reports it has raised over $1 million in a Share Purchase Plan (SPP) aiming to support exploration activities at the Sandstone Gold Project in Western Australia.
The company says the SPP closed oversubscribed and allowed eligible shareholders to subscribe for new Alto shares at an issue price of $0.065 per share.
Alto states its board has exercised discretion to increase the quantum of the SPP to accommodate excess demand with shareholders subscribing for over 21.354 million new shares for a total amount of around $1.388 million.
The funding will be applied to the ongoing resource work updating the current open-pitable 635,000oz @ 1.6g/t gold resource, anticipated to be completed in the March 2023 quarter, and start the next phase of exploration at the Sandstone Gold Project.
Alto Metals Managing Director Matthew Bowles says: “The strong demand we had for the SPP is an endorsement of the way in which we undertake our exploration activities and the quality of our Sandstone Gold Project.
“The strong demand we had for the SPP is an endorsement of the way in which we undertake our exploration activities and the quality of our Sandstone Gold Project”
Our main focus over the past 12 months has been on growing our shallow gold resource and we look forward to having the updated resource estimate completed in the first quarter of next year, along with commencing our next phase of drilling.”
Alto also advises that it has secured firm commitments to raise an additional $700,000 through the issue of over 10.769 million new shares on the same terms as the SPP. These new shares will be issued under the placement to professional and sophisticated investors.
The company reports the new shares subscribed for under the SPP will be issued and applied for quotation on 19 December, and the new shares subscribed for under the placement will be issued and applied for quotation on 22 December.
It also states the funding will be applied to ongoing resource work updating the current Mineral Resource Estimate (MRE) anticipated to be completed in the March 2023 quarter. The company will use the funding to commence the next phase of exploration at Sandstone.
Alto Metals is an advanced gold explorer that owns the Sandstone Gold Project, located in the east Murchison region of Western Australia. The project covers around 740km-square of the Sandstone Greenstone Belt, and it currently has a Mineral Resource Estimate (MRE) of 635,000 ounces of gold @ 1.6g/t, constrained within optimised pit shells.
The company reports it is currently focused on growing these resources through continued exploration.
Images: Alto Metals Ltd
