Vancouver, Canada, January 04, 2012 --(PR.com
)-- Alto Ventures Ltd. has raised $612,000 in the first and second tranches of its private placement announced on Dec. 16, 2011, through the issuance of 3.4 million flow-through common shares. One insider participated in the private placement for 140,000 flow-through common shares.
The company paid finders' fees of $37,359 cash and issued 207,550 broker warrants exercisable at a price of 15 cents for a period of two years in connection with the private placement. All securities are subject to a four-month hold period expiring April 22, 2012, as to 1.6 million flow-through common shares and expiring April 23, 2012, as to 2.34 million flow-through common shares.
Proceeds from this financing will be used for exploration on the company's district-scale Oxford Lake gold and base metals property located in Manitoba. The company plans to start a 5,000-metre diamond drilling program in January, 2012, to evaluate two targets:
The iron-formation-hosted Rusty gold zone containing 154,000 ounces gold in historic resources of 800,000 tonnes averaging six grams per tonne (g/t) gold (i);
The potential for massive sulphide copper zinc deposits.
Previous work, including Alto's 1,700-line-kilometre VTEM geophysical survey, has identified geology and geophysical signatures favourable for hosting massive sulphide deposits. (See news release dated Nov. 16, 2011.)
(i) The resource was estimated in 1990 and a qualified person (QP), as defined by National Instrument 43-101, has not done sufficient work to classify this historic estimate as current mineral resources. Alto is not treating the historic estimate as current mineral resources, as defined by NI 43-101, and thus the historic estimate should not be relied upon.