Announcement highlights
The company will raise 5.5 million Australian dollars at a stock price of 0.075 Australian dollars;
This additional issuance has not only been supported by existing major shareholders, but also by a number of new resource investment institutions and senior investors;
This subscription application exceeded expectations, indicating that it is sought after by the market;
This additional issuance will help to launch planned exploration and drilling projects in Lord Nelson, Lords mineralization belt and multiple Sandstone gold mine projects, while increasing operating funds for the company;
The planned next step for Sandstone exploration has received sufficient financial support. The exploration activities include:
In the next week, the RC drilling project with a 5,000-meter-wide interval will be started to test the mineralization potential of the Lord Nelson in the Lors mineralization zone, as well as the high-grade gold mineralization under the Lord Nelson pit and the Orion ore body;
All planned RC drilling projects will be increased to 30,000 meters, testing the entire 3-km-long Lords mineralization zone and multiple regional targets.
The company will plan more drilling based on these results.
(Geological map of the company's core asset Sandstone gold mine project)
The company also intends to seek shareholders’ approval for the proposal of ATO’s directors to also raise A$900,000 through this additional issuance. The directors who plan to participate include the major shareholder Windsong Valley, and their financing terms are consistent with this additional issuance.
Mr Matthew Bowles, the managing director of ATO, commented:
"We are very pleased that this additional issuance has received strong support from existing and new investors, including institutional investors in multiple resource sectors, which also proves the strong potential of our Sandstone gold project.
"The funds obtained from this additional issuance will help ATO to carry out a 30,000-meter RC drilling project. The focus of this drilling is to test the extension of the known gold mineralization in Lord Nelson, test the new Orion ore body discovery and several in Lord 3 Other targets on the kilometer-long mineralization corridor.
"I want to thank all participants for the additional issuance for their support, and welcome new shareholders to join us. We look forward to the new stage of the drilling project starting next week."
This additional issuance is 11.8% discount to the closing price of A$0.085 on the previous trading day. The company will issue 44,639,137 new shares in accordance with Listing Rule 7.1, and the remaining 29,759,424 shares will be issued in accordance with 7.1A.
At present, Habrok (Alto) Ltd is also making an off-site acquisition of Alto Metal at a price of A$0.07 per share, and the deadline is September 30, 2020.
Today, Ao Tuo Metal shares fell 1.18% to 0.084 Australian dollars, with a market value of 25 million Australian dollars.
