The placement, at 5c per share, will see Macquarie Bank (7%) and Argonaut (6%) emerge as substantial shareholders in the company.
Macquarie Bank has also agreed to offer Alto a $US500,000 ($A655,400) revolving line of credit subject to formal documentation and satisfaction of conditions precedent.
“Argonaut’s commitment to raise $2.5 million plus Alto’s funds on hand of some $3.9 million will allow us to fund the 52 square miles 3D seismic survey over the Waterloo Salt Dome in Louisiana and the Phase 3B five-well drilling program,” managing director James Trimble said.
Trimble said he and non-executive director Tony Grist will participate in the placement, subject to shareholder approval.
Ten million shares will be placed under Alto’s 15% capacity and the remaining shares will be placed subject to shareholder approval at an extraordinary general meeting to be held on December 18.
