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Mining

Alto Metals new substantial shareholder increases stake

Alto recently received a takeover offer, which may explain why the new substantial shareholder has further increased its stake.

Alto Metals Ltd’s (ASX:AME) new substantial shareholder Harvest Lane Asset Management has increased its holding from 5.32% to 6.34%.

The special situations investment manager is focused on selecting high-return and/or low-risk opportunities arising from takeover and corporate activity.

Harvest Lane became a substantial shareholder in Alto on February 27, 2020.

Recent takeover offer from Goldsea

Alto received a 6.5 cents per share off-market cash takeover offer from Goldsea Australia Mining Pty Ltd in late February 2020.

The offer values Alto at $20.7 million and is subject to a number of conditions, including a 90% minimum acceptance condition and approval of the Australian Foreign Investment Review Board (FIRB).

Alto is focused on exploration at its Sandstone Gold Project in Western Australia, which has a JORC resource of 290,000 ounces grading 1.7 g/t gold.

Alto's board considers the continued, unsolicited, interest a strong endorsement in the company and the Sandstone Gold Project.

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