Financing, reorganization and acquisition of gold projects in Manitoba, Ontario and Quebec

• Published in: Canada NewsWire p. 1
• Format: Newsletter
• Language: English
• Published: Ottawa PR Newswire Association LLC 23.04.2004
• Subjects: Alliances; Anniversaries; Asset acquisitions; Drilling; Geology; Gold; Joint ventures; Mineralization; Quartz

Alto Ventures Ltd. has entered into a letter of intent (the "LOI") with Hidefield PLC (AIM:HIF) ("Hidefield"), providing for the acquisition by the Company of certain Canadian mineral properties held by Hidefield. Hidefield holds approximately 18% of the shares of the Company and the Executive Chairman of Hidefield, John Prochnau, is also a director of the Company. Under the terms of the LOI the Company would issue a total of 10,700,000 common shares of the Company at a deemed price of $0.10 per share to Hidefield in order to acquire the Greenoaks gold property, Ontario, the Dog Lake gold property, Ontario and Hidefield's 50% interest in the Oxford Lake gold property, Manitoba. The Oxford Lake property is the subject of a 50-50 joint venture with Anglo Pacific Group PLC, a company at arms length to the Company, and in this regard the Company has also entered into a letter of intent with Anglo Pacific Group PLC to acquire its 50% interest in the Oxford Lake property for 4,000,000 common shares of the Company having a deemed price of $0.10 per share. The Greenoaks property consists of 15 mining claims covering 409 hectares, held under the terms of Ontario 21 year leasehold patents. The property is road accessible a distance of 43 kilometres northeast of Beardmore, Ontario. Gold was discovered on the property by prospecting in 1947 and limited geophysical surveying, geological mapping and diamond drilling were completed on the No. 1 Zone up until 1960. From 1981 to 1983, test mining and further diamond drilling were conducted. The property was previously the subject of an option from Hidefield to the Company, which remained unexercised due to lack of capital at the time, and is the subject of a 43- 101F1 report entitled "A Geological Report on the Coldstream Property, Burchell Lake Area, Thunder Bay Mining District, Ontario and the Greenoaks Property, Pifher and Elmhirst Townships, Tyrol Lake Area, Thunder Bay Mining District, Ontario" by Ken Hill, ProMin Consulting Associates Inc., dated September 30, 2002 and filed on SEDAR. The Company has also reached agreement with Mirador Management Co., a closely held partnership at arms length to the Company, wherein Mirador has agreed to assign its rights to acquire an option (the "Cameco Option") from Cameco Corporation on its 70% interest in the Despinassy gold property, Quebec. As consideration for the assignment, the Company is to reimburse Mirador for a $10,000 payment made to Cameco in order to secure the Cameco Option and issue 200,000 shares of the Company at a deemed price of $0.10 per share. Under the terms of the Cameco Option, the Company would be obligated to make an initial cash payment to Cameco of $40,000 on execution of a definitive option agreement, pay a further $50,000 in cash or shares, at the Company's option, after 6 months, make 4 further payments of $100,000, as to $25,000 in cash and $75,000 in cash or shares at the Company's option, annually on the anniversary dates of execution of a definitive option agreement and make a final payment on the 5th anniversary date of execution of $50,000 in cash and $150,000 in cash or shares at the Company's option. The Cameco Option contemplates that any shares issued as consideration would be at a deemed price equal to the average closing price of the Company's shares over the 30 days preceding payment.