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Be the first with the news that moves the market- Alto Ventures Ltd (TSXV:ATV) is acquiring Empress Resources (TSXV:EMPX) through an exchange of cash, shares and assets
- Once purchased, Empress will assume Alto’s thriteen mining royalties in exchange for C$1.25 million
- Alto Ventures will continue on as an exploration company, developing the Destiny Gold Project in Québec
- Alto Ventures Ltd (ATV) was up 25 per cent, with shares trading at $0.025
- Empress Resources (EMPX) remained steady, with shares also trading at $0.025
Alto Ventures Ltd (TSXV:ATV) is acquiring Empress Resources (TSXV:EMPX) and dividing exploration and royalty portfolios between the two companies.
As a result of the deal, Empress shareholders will hold a 52 per cent interest in a new Alto exploration venture in exchange for C$1.25 million.
Meanwhile, Empress Royalty, a subsidiary of Empress Resources, will receive Alto’s thirteen precious metal royalties and a sum of $250,000. The royalties are spread across Manitoba, Quebec, Ontario and Saskatchewan.
Once Empress Royalty acquires the royalties, the new Alto venture will continue as an active exploration company.
To fund this exploration, Alto is offering 10-cent units, comprising of a common share and a warrant, to investors.
Alto is retaining the Destiny Project in Québec and the new funding will help develop the site’s gold deposits. The deposit at Destiny has an indicted mineral reserve of 364,000 ounces of gold.
Before the acquisition, Alto also discovered viable grades of copper zine and silver at Destiny.
Empress Royalty is also expected to announce its upcoming financing measures soon. The financing will go towards further royalty acquisitions.
The two companies announced the acquisition early last month. At the time, Rick Mazur, CEO of Alto, believed the deal was in both companies’ best interest.
“The proposed business combination with Empress will revitalize Alto by giving it the funds it requires to advance its key exploration properties.
“By placing our royalty assets in Empress, Alto shareholders will participate in the growth of a well managed company dedicated to building a profitable royalty and streaming business,” he said
Alto Ventures Ltd (ATV) was up 25 per cent, with shares trading for $0.025 at 4.37 pm EST.
Empress Resources (EMPX) remained steady, with shares also trading for $0.025 at 4.37 pm EST.
