As the scheme of arrangement with Brightstar Resources Ltd (ASX:BTR) is now legally effective, the shares of Alto Metals Ltd (ASX:AME) have been suspended from trading on the Australian Securities Exchange (ASX).
The scheme, which sees Brightstar acquire 100% of Alto Metals, has become effective following lodgement of the copy of the orders of the Supreme Court of Western Australia in relation to the scheme with the Australian Securities and Investments Commission (ASIC).
Shareholders who hold Alto shares at the record date of 4:00pm (AWST) on Wednesday, December 4, 2024, will receive four new Brightstar shares for every one Alto share held.
Scheme timeline
Alto shares were suspended from trading on ASX at the close of trading yesterday and it is expected that the scheme will be implemented, and scheme consideration will be issued on Monday, December 9, 2024.
The company will then be removed from the official list of ASX with effect from the close of business on Tuesday, December 10, 2024.
READ: Alto Metals board recommends Brightstar offer to consolidate Sandstone gold district
Emerging gold producer
This scheme, which was unanimously recommended by the Alto board and supported by the company’s largest shareholder, will consolidate the Sandstone gold district in Western Australia, creating an emerging gold producer.
Alto managing director Matthew Bowles said previously: “This is 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.”