Alto Metals Ltd (ASX:AME) has raised $2.1 million through an oversubscribed share purchase plan (SPP) and placement.
The money will go towards the ongoing resource work updating the current open-pitable 635,000 ounces @ 1.6 g/t gold resource, which is anticipated to be finished in the March 2023 quarter.
The company will also start the next phase of exploration at the Sandstone Gold Project.
Notably, the strengthened balance sheet will allow for low-cost exploration over advanced regional targets, outside of the Alpha domain.
Well supported SPP
The SPP, which closed on December 9 and was well supported, contributed $1.4 million to the total raise. It allowed eligible shareholders to subscribe for new AME shares at an issue price of $0.065 per share.
The Alto board exercised its discretion to increase the quantum of the SPP to accommodate excess demand.
Shareholders subscribed for a total of approximately 21,354,887 new shares under the SPP for a total of approximately $1,388,000.
The new shares subscribed for under the SPP will be issued and applied for quotation on Monday December 19, 2022.
Firm commitment for placement
Alto received firm commitments to raise an additional $700,000 (before costs) through the issue of 10,769,231 new shares on the same terms as the SPP.
The new shares issued under the placement to professional and sophisticated investors will be issued within Alto's existing placement capacity under Listing Rule 7.1.
The new shares subscribed for under the placement will be issued and applied for quotation on Thursday December 22, 2022.
New shares issued under either the SPP or the placement will rank equally with existing shares on issue.
Strong endorsement of activities
“The strong demand we had for the SPP is an endorsement of the way in which we undertake our exploration activities and the quality of our Sandstone Gold Project,” Alto managing director Matthew Bowles said.
“Our main focus over the past 12 months has been on growing our shallow gold resource and we look forward to having the updated resource estimate completed in the first quarter of next year, along with commencing our next phase of drilling.”