VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 24, 2014) - Alto Ventures Ltd. (TSX VENTURE:ATV) ("Alto Ventures") is pleased to announce that it has agreed to sell its underlying 0.5% NSR Royalty on the Windfall and Alcane properties to Virginia Mines Inc. ("Virginia") in consideration for an amount of $750,000 payable by the issuance of common shares in the capital of Virginia at a price per share of $13.00. This price is equal to the Volume Weighted Average Price of Virginia on the Toronto Stock Exchange for the last five day trading period prior to Alto Ventures accepting Virginia's offer. The common shares will be subject to a four month regulatory hold period from the date of issuance.
In connection with this transaction, Virginia Mines will also subscribe for a non-brokered private placement in Alto Ventures aggregating $250,000, at a price of $0.15 per share, totaling 1,666,667 shares. The proceeds of the private placement will be used to advance diamond exploration on Alto's properties in the Pikoo district of north-central Saskatchewan and for general working capital.
The sale of the Windfall and Alcane NSR Royalty and the private placement shall close concurrently and be conditional upon: title due diligence satisfactory to Virginia, approval by the Boards of Directors of Virginia and Alto Ventures, regulatory approvals and execution of final agreements with customary representations, warranties, covenants and conditions for transactions of such nature.
The Windfall and Alcane properties are located in Northern Quebec and form a contiguous block. Both are being explored actively by Eagle Hill Exploration Corp. and most of the currently known gold resources reported by Eagle Hill Exploration for the Main Zone lie within the Windfall block of claims. For details of the Windfall Lake resources please see Eagle Hill Exploration Corp. news release dated March 3, 2014.
Rick Mazur, CEO and Director of Alto Ventures stated: "We are pleased to have Virginia become a shareholder of Alto Ventures. We are also pleased to become a shareholder of Virginia, a very successful growth oriented company".
About Alto Ventures Ltd
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold and diamond properties. Alto has recently acquired large packages of land in Saskatchewan that are prospective for hosting diamonds. The Company is active in Ontario, Quebec and Manitoba on gold exploration through its 100% owned properties and strategic partnerships and investments. For more details regarding the Company's projects, please visit our website atwww.altoventures.com.
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.