Alto Metals Ltd (ASX:AME) has attracted a new substantial shareholder in Patronus Resources Ltd (ASX:PTN), a Northern Territory and Western Australia gold, base metals and uranium development and exploration company.
Patronus has acquired 60,764,746 shares in Alto Metals, which represents an 8.42% stake.
Significantly, German-based resources investor Deutsche Balaton/Delphi, which holds a major 42.35% stake in Patronus, also holds 9.99% of Alto Metals and combined, these entities now hold 18.41% of Alto.
Proposed merger
Alto has a proposed scheme of arrangement under which Brightstar Resources Ltd (ASX:BTR) may acquire 100% of the shares in Alto, which would consolidate the Sandstone gold district in Western Australia, creating an emerging gold producer.
READ: Alto Metals has transformational quarter with proposed Brightstar merger
Under the scheme, which has been unanimously recommended by the Alto board and supported by the company’s largest shareholder, Alto shareholders will receive four Brightstar shares for each Alto share held, with an implied value of around 10 cents per Alto share based on BTR’s closing price on October 30, 2024.
On the proposal, Alto managing director Matthew Bowles said it was “a key step towards building a significant gold business and provides Alto shareholders with an exciting opportunity to become part of an emerging gold producer.
“In addition to delivering a significant premium, the scheme, if approved and implemented, will allow Alto shareholders to retain ongoing exposure to the development of the Sandstone Gold Project, as part of a larger resources group holding multiple projects, which will reduce the risks associated with holding a single project."
“We believe this transaction is a great outcome for Alto shareholders and stakeholders, who will benefit from the development of the Sandstone Gold Project as part of an enlarged gold company with an exciting future.”
About Patronus
Patronus has a combined gold mineral resource estimate (MRE) of more than 1.4 million ounces at projects in Western Australia and the Northern Territory.
In WA, the 100%-owned Cardinia Gold Project (CGP) in the highly prospective North-Eastern Goldfields region has a 900,000-ounce gold resource defined in oxide and deeper primary mineralisation at Cardinia East and Mertondale.
The Northern Territory Project boasts more than 1,500 square kilometres of prime tenure in the Pine Creek Orogen, which hosts significant gold and world-class uranium deposits.
Patronus has a current gold MRE of 300,000 ounces at Fountain Head Project and 177,000 tonnes of zinc, 37,000 tonnes of lead, 16 million ounces of silver and 200,000 ounces of gold at the Iron Blow and Mt Bonnie base metals projects.