Middle Island Resources has tightened its hold on the Sandstone gold project in Western Australia’s East Murchison region, acquiring a 10 per cent stake in Alto Metals.
The company has acquired 10 per cent of the issued capital in the fellow Western Australian junior gold producer, which holds several prospective tenements within the Sandstone project.
This includes the Lord Nelson tenement, which has returned drilling results including 20 metres at 4.1 grams per tonne of gold from 77 metres, Lord Henry, Havilah and Maninga Marley.
Alto recently completed an indicated and inferred mineral resource estimate at the project, which showed 6.2 million tonnes at 1.7 grams per tonne of gold for 331,000 ounces.
Middle Island also holds existing tenements within the Sandstone project including Two Mile Hill, which has an estimated mineral resource of more than 1 million tonnes at 1.36 grams per tonne of gold, Shilington open pit, Sandstone Mill, Eureka and Wirraminna.
The company’s acquisition of the stake in Alto was completed in anon-market transaction, at a cost of 9.5 cents per Alto share.
This is not the first time that Middle Island has expressed interest in Alto Metals.
In December 2019, Middle Island made an off-market takeover bid for fully paid ordinary shares in Alto Metals, but the offer lapsed.
Middle Island’s directors “strongly believed” that combining its assets with Alto’s offered a substantial growth opportunity for shareholders.
It would also offer the opportunity for Alto Metals to make use of Middle Island’s existing Sandstone processing plant and infrastructure and consolidate their gold resources and exploration potential.
Upon the lapse of the December 2019 offer, Middle Island stated that it “will continue to pursue meaningful dialogue with the Alto board o directors, seeking to add value for both Alto and Middle Island shareholders”.