Under the terms of the Agreement Foundation can acquire a 60% interest in the Property by issuing the Company a total of 1,000,000 common shares over a two year period and incurring $3,000,000 in expenditures on the Property over the course of 4 years, a minimum of $400,000 of which must be incurred in the first year. 500,000 of such shares were issued to the Company on the closing of the Qualifying Transaction and a further 500,000 are to be issued following completion of the minimum expenditures. Under the terms of the Agreement these shares are restricted from transfer for one year.
Concurrent with completion of the Qualifying Transaction, Foundation completed a private placement and raised $558,550 and Mike Koziol, the President and CEO of the Company, has been appointed to the board of directors of Foundation.
The Property is located in the Shebandowan greenstone belt approximately 100 km west of Thunder Bay, Ontario. The Property includes the former producing North Coldstream copper-silver-gold mine and the East Coldstream gold deposit. During the past few years Alto made strategic land acquisitions through staking and purchases to cover over 10 km of a prospective mineralized structure. Upon earning the initial 60% interest in the Property Foundation may elect to acquire a further 10% interest by completing a feasibility study on the Property. In circumstances where Foundation was to earn the 70% interest in the Property the Company would have the right, in lieu of retaining a 30% interest in the Property and proceeding with a joint venture with Foundation, to elect to take a 2.5% net smelter returns royalty, 1% of which could be repurchased by Foundation for $1,000,000.
Marian (Mike) Koziol, P.Eng., P.Geo., the President of Alto, is the qualified person responsible for the technical information relating to the Property set out in this news release.
About Alto Ventures
Alto Ventures Ltd. is a gold exploration and development company with a portfolio of highly prospective properties in the Canadian Shield. 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.
President & 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:
Mark Prosser
Investor Relations Manager
ALTO VENTURES LTD.
910-475 Howe Street
Vancouver, BC, V6C 2B3
Tel: 604-638-3947
Fax: 604-689-3609
Email: mark@altoventures.com
Website: www.altoventures.com
