Alto To Raise $2.2 Million
Wednesday, October 10th, 2007
Alto Ventures Ltd. is pleased to announce up to $2,200,000 non-brokered private placement financing. The financing will be completed through the issuance of up to 6,363,636 units at a price of $0.11 per unit and 11,538,462 flow through shares at $0.13 per share. Each non-flow through unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $0.20 exercisable within one year of the date of closing.
The terms and conditions of the warrants will also contain an accelerated exercise provision that, if the Company’s shares trade on a volume weighted average closing price of $0.30 for 20 consecutive trading days, warrant holders will be given notice that they have 30 days to exercise or their warrants will expire. Finder’s fees payable in cash and/or securities will be paid in conjunction with this placement in accordance with TSX Venture Exchange policies.
Proceeds from this financing will be used for exploration work in the Beardmore-Geraldton Gold Belt, diamond drilling of the Company’s Despinassy Property and for general working capital. Exploration in the Beardmore-Geraldton area is reaching a boiling point and Alto is well positioned with four gold projects in the belt. Drilling at Despinassy will focus on advancing several of the previously identified prospects, including the Darla Zone where 19.5 g/t gold was obtained across 2.1m from drilling, as well as increasing the size of the DAC Deposit where resources of 167,000 tonnes grading 6.88 g/t gold in the Indicated plus 445,000 tonnes grading 4.46 g/t gold in the Inferred categories were estimated in compliance with NI43-101 standards (see Alto news release dated November 26, 2006).