Alto Metals Ltd (ASX:AME) is well-funded to continue exploration at its 100%-owned Sandstone Gold Project in Western Australia after receiving overwhelming support for a new share issue involving 96.2 million shares to raise a total of A$5 million before costs.
In addition, the advanced gold explorer will offer 8.1 million new shares, under a drill-for-equity arrangement, to institutional, professional and sophisticated investors to raise a further A$420,000.
The placement attracted strong support from existing major shareholders as well as new leading resource-focused funds, including $1 million from Lion Selection Group.
Company directors have also pledged their support for the placement with a collective total of A$148,000 for 2.8 million new shares, which is subject to shareholders’ approval to be sought in early September.
Sufficiently funded
Funds raised from the new share issue will be used for ongoing extensional and resource drilling at Sandstone's Indomitable and Vanguard targets.
Drilling here has targeted higher-grade structures at depth within fresh rock, along with priority regional targets, including Hacks and Oroya.
The funds raised will cover all the exploration planned for 2023, including forward programs planned for the next 12 months.
Systematic exploration
Alto’s focus remains on further growing Sandstone’s existing resources within the Alpha Domain while reviewing the multiple advanced brownfield prospects within the project’s 740 square kilometres area.
With the funding secured and following the receipt of assays pending for 4,500 metres of RC drilling at Indomitable, the next phase of exploration at Sandstone is expected to begin in the coming weeks.
This will include:
- 5,000-10,000 metres of extensional and resource RC drilling and about 3,000 metres of diamond drilling at Indomitable, targeting high-grade primary mineralisation;
- 5,000 metres of extensional and resource RC drilling at Vanguard;
- First-pass RC drilling at a number of historic gold workings within the Hacks West area and regional targets; and
- Low-cost lithium exploration work at Sandstone, where a number of prospective targets have been identified.
Alto managing director Matthew Bowles said: We are extremely pleased with the overwhelming support for the placement from our existing shareholders and new resource-focused investment funds, which is a strong endorsement of the quality of our Sandstone Gold Project, and I would like to thank everyone for their support.
“Our drilling at Sandstone continues to deliver outstanding results and this capital raising sees Alto fully funded for all our current exploration planned for CY2023 and forward program for the next 12 months.
“We are looking forward to receiving assays currently pending from over 4,500 metres of RC (reverse circulation) drilling at Indomitable, targeting potential high-grade structures in the primary rock at depth, and rigs are ready to be mobilised to follow up on these pending results.”