| ||Wed Nov 7, 2007|
Alto Announces Closing Of Second And Final Tranches Of Private Placement
| ||Vancouver, B.C., November 7, 2007. Alto Ventures Ltd. (ATV: TSX-V) is pleased to announce that it has closed the second and final tranches of its non-brokered private placement previously announced on October 9, 2007 and amended on October 16, 2007. The closing of the first tranche was announced on October 26, 2007 which raised a total of $999,400 through the issuance of 6,926,152 flow through common shares at a price of $0.13 per share and 900,000 units at a price of $0.11 per unit.|
The Company has raised a further $1,659,460 through the issuance of 3,738,846 flow through common shares at a price of $0.13 per share and 10,667,364 units at a price of $0.11 per unit. The units consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at a price of $0.20 for a period of one year from closing, 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 $0.30 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 gross proceeds raised via this placement are $2,658,859.
Finders' fees were paid on a portion of the financing in the amount of $16,022 in cash, the issuance of 96,950 broker warrants at a price of $0.13 per warrant share and 42,000 broker warrants at a price of $0.11 per warrant share. All broker warrants are exercisable for a period of one year expiring October 31, 2008 at exercise prices of $0.13 and $0.11, respectively. All securities issued pursuant to the private placement are subject to a four month hold period expiring March 1st and March 6th, 2008.
Finders' fees were paid in the first tranche of the financing in the amount of $64,961 in cash, 484,830 in broker warrants at $0.13 per warrant share on the flow through portion and 63,000 in broker warrants at $0.11 per warrant share on the unit portion. All broker warrants are exercisable for a period of one year expiring October 24, 2008 at exercise prices of $0.13 and $0.11, respectively. All securities issued pursuant to the first tranche of the private placement are subject to a four month hold period expiring February 24, 2008.
Proceeds from this financing will be used for exploration work in the Beardmore-Geraldton Gold Belt, diamond drilling of the Company's Despinassy Property and for general working capital. Exploration in the Beardmore-Geraldton area is very active and Alto is well positioned with four gold projects in the belt. Drilling at Despinassy will focus on advancing several of the previously identified prospects, including the Darla Zone where 19.5 g/t gold was obtained across 2.1m from drilling, as well as increasing the size of the DAC Deposit where resources of 167,000 tonnes grading 6.88 g/t gold in the Indicated plus 445,000 tonnes grading 4.46 g/t gold in the Inferred categories were estimated in compliance with NI43-101 standards.
Mike Koziol, P. Geo., P.Eng. and Alto's President and Director is the Qualified Person that has reviewed and approved this news release.
About Alto Ventures Ltd
Alto Ventures Ltd. is a gold exploration and development company with a portfolio of twelve properties in the Canadian Shield. With a pipeline of quality projects, the Company's approach to maximizing opportunities while minimizing exploration risk is to attract well financed partners with the technical expertise to take the projects onto feasibility and subsequently production.
Alto's Management and Board of Directors have a long and successful track record of creating shareholder value through systematic exploration, acquisitions and discovery. The Company is currently active in Quebec where it is focussed on the Despinassy project in the Abitibi Greenstone Belt and in Ontario in the Beardmore and Shebandowan gold districts.
ON BEHALF OF THE BOARD,
Mike Koziol, P. Geo., P. Eng.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact:
Investor Relations Manager
ALTO VENTURES LTD.
910-475 Howe Street
Vancouver, BC, V6C 2B3
Email: [email protected]
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