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Alto Metals enters $300,000 convertible loan facility with chairman and major shareholder

Last updated: 20:17 09 Dec 2018 EST, First published: 04:17 09 Dec 2018 EST

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Wheeler holds nearly 31.5 million Alto shares

Alto Metals Ltd (ASX:AME) has entered into a convertible loan financing facility agreement worth $300,000 with its acting chairman and largest shareholder Terry Wheeler.

Alto is not required to provide any security for the loan which will accrue interest at 8% per annum and is repayable on or before December 31, 2019.

 

The first tranche is expected to be received immediately and the two remaining will be advanced on or before January 31 and February 28, respectively.

Any interest accrued on the loan will be repaid by Alto in cash.

Under the agreement Alto may elect to repay the outstanding principal and accrued interest in cash or to issue 6,382,979 ordinary shares at an issue price of 4.7 cents to satisfy the loan.

READ: Alto Metals intersects high-grade gold up to 19.2 g/t at Vanguard prospect in WA

Alto recently returned high-grade gold assays in reverse circulation drilling at the Vanguard prospect within its wider Sandstone Gold Project.

A hole was drilled to confirm the prospect’s geological model and provide samples for preliminary metallurgical test work.

Highlighted intervals include: 40 metres at 3.6 g/t gold from 61 metres, including 5 metres at 8.7 g/t from 61 metres; 19 metres at 4 g/t from 69 metres; and 7 metres at 3 g/t from 94 metres.

Individual 1-metre assays include: 1 metre at 19.2 g/t from 63 metres; 1 metre at 15.1 g/t from 71 metres; and 1 metre at 11.9 g/t from 79 metres.

READ: Alto Metals eyes 1 million+ gold resource at Sandstone to recommence mining

Alto holds about 800 square kilometres of prospective ground in the Archaean Sandstone Goldfield in the East Murchison mineral field of WA.

Since acquiring the project in 2016, the company has compiled and reviewed a large legacy database ahead of a series of focused exploration and drilling campaigns.

Alto’s goal is the delineation of a plus-1 million-ounce JORC mineral resource that could become the basis for the re-establishment of standalone oxide and primary gold mining and milling operations.