Horizon Gold scoops up over 60 million shares in Alto Metals

Alto Metals (ASX:AME) reports Horizon Gold (ASX:HRN) has acquired more than 60.759 million shares in the company, representing 9.91% of Alto Metals’ issued capital.

The shares were acquired for $3.17 million, with the funding provided through a loan facility from a subsidiary of Horizon’s major shareholder, Zeta Resources. This loan facility is unsecured, has an interest rate of 8% per annum, and is repayable by no earlier than 31 December 2023.

Commenting on the investment, Horizon Gold Managing Director Leigh Ryan says: “This strategic investment in Alto Metals is part of our broader aim to enhance the value of Horizon’s Gum Creek Gold Project.”

This strategic investment in Alto Metals is part of our broader aim to enhance the value of Horizon’s Gum Creek Gold Project”

Horizon Gold is a Perth-based gold explorer focused on its flagship Gum Creek Gold project 640km northeast of Perth, which represents an ‘exciting’ gold exploration and potential development opportunity. 

The project hosts a mineral resource of 2.14 million ounces of gold, while the free-milling portion of the Mineral Resource Estimate (MRE) is 32,97 million tonnes @ 1.22g/t Au for 1.3 million ounces, representing over 61% of the total resource ounces.

Alto Metals has a $36.76 million market capitalisation and is also a Perth-based gold explorer that holds the Sandstone Gold Project, which covers around 900km-square in the East Murchison Mineral Field of Western Australia. Sandstone features an unconstrained MRE of 23.5 million tonnes @ 1.4g/t Au for 1.05 million ounces.

On 31 March 2023, Alto had $2 million cash at hand, according to its latest presentation published on 14 June 2023.

Write to Harry Mulholland at Mining.com.au

Images: Alto Metals Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.