Alto closes final tranche of financing, raises $725,500
2007-01-22 09:21 ET - News Release
Mr. Richard Mazur reports
ALTO ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF PRIVATE PLACEMENT
Alto Ventures Ltd. has closed the second and final tranche of its non-brokered private placement previously announced in Stockwatch on Dec. 5, 2006. The closing of the first tranche was announced in Stockwatch on Jan. 2, 2007, which raised a total of $332,000 through the issuance of 3.32 million units. The company has raised a further total of $725,500 through the issuance of 7,255,000 units. The units were sold at a price of 10 cents per unit and comprise one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of 20 cents for a one-year period expiring Jan. 19, 2008, subject to a written expiry notice from the company triggered by the company's common shares trading on the TSX Venture Exchange at or above a weighted average trading price of 30 cents for 20 consecutive days and, upon such written notice from the company, the warrants will expire 30 days from the date of such notice.
The total proceeds raised via this placement are $1,057,500.
Finders' fees will be paid on this portion of the financing in the amount of $24,500 and 245,000 units will be issued with the same terms as those issued to subscribers. All securities issued pursuant to the private placement are subject to a four-month hold period expiring May 19, 2007.
Finders' fees were paid in the first tranche of the financing in the amount of $1,750 and 17,500 units will be issued with the same terms as those issued to subscribers. All securities issued pursuant to the private placement are subject to a four-month hold period expiring April 28, 2007. This financing is subject to regulatory approval.
Total finders' fees paid via this placement are $26,250 and 262,500 units.
Proceeds from this financing will be used for advancement of the company's Despinassy, Beardmore and Alcudia gold projects, and for general working capital. Alcudia adjoins Noront Resources' Windfall gold project in Quebec, in which Alto holds a 0.5-per-cent net smelter royalty interest. Noront recently announced an underground exploration program at the Windfall project. |
