In order to exercise the Option, AVC is required to incur work expenditures on the Chilko Property totalling approximately $380,000 over a period expiring April 30, 2014. AVC would also be required over the next 18 months to make cash payments to the vendors under the Option Agreement of $70,000 and to issue such number of shares of AVC as would have a value equal to that of 350,000 Alto shares, based on each company's trading price at the time of issuance. Under the terms of the Option Agreement the vendors retain a 2% net smelter returns royalty and AVC has the Option to purchase one half of such royalty for $1,000,000.
The Chilko Property is located approximately 100km west southwest of Williams Lake and has excellent road access. It lies 15 km north of the Newton gold zone which is currently being explored as a bulk tonnage gold deposit by Amarc Resources Ltd., an affiliate of the Hunter Dickenson Group. The Prosperity gold-copper porphyry operated by Taseko Mines Ltd. is located 50 km south of the Chilko Property. Alto conducted a prospecting and soil geochemical sampling program in 2010 and identified certain areas of anomalous geochemistry.
Closing of the Assignment Agreement remains subject to regulatory acceptance and is subject to AVC completing a satisfactory due diligence review of the Chilko Property and obtaining an NI 43-101 compliant technical report establishing the Chilko Property as a "Qualifying Property", as defined in the policies of the TSX Venture Exchange. In connection with the closing of the Acquisition Agreement, AVC intends to make application to transfer its listing from NEX to the TSX Venture Exchange.
About Alto Ventures Ltd
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold properties. The Company is active in Quebec in the Abitibi greenstone belt on the Destiny gold property and in Ontario, exploring in the Beardmore-Geraldton gold belt and the Coldstream project in the Shebandowan gold district.
ON BEHALF OF THE BOARD,
Richard J. Mazur, P. Geo.,
CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Mike Koziol,
President and Director
ALTO VENTURES LTD.
Unit 8 -- 1351D Kelly Lake Rd
Sudbury, ON., P3E 5P5
Tel: 705-522-6372
Fax: 705-522-8856
Email: koziol@altoventures.com
Website: www.altoventures.com
Matt Terriss,
Director of Corporate Affairs
ALTO VENTURES LTD.
910-475 Howe Street
Vancouver, BC, V6C 2B3
Tel: 604-638-3947
Fax: 604-689-3609
Email: terriss@altoventures.com
Website: www.altoventures.com
