Alto Group Holdings, Inc., has announced that the Company has amended the previously announced Letter of Intent (L.O.I.) in regards to certain mining rights in Ghana, West Africa. Alto plans to form a joint venture with the mineral rights owners, Castle Peak Mining Ltd. and will formulate a definitive Joint Venture Agreement by the end of 2009.
Under the terms of the amended L.O.I. the Company shall select on or before January 31, 2010 two projects from the seven held by Castle Peak. Alto will have a 70% interest in the primary property selection and will have a 50% interest in the secondary property. The terms of the L.O.I. include exploration expenditure commitments, a schedule of cash payments and issuance of restricted shares.
The Company intends to commence an aggressive exploration and development program in Ghana. Alto will spend $100,000 on the Phase 1 program beginning November 15, 2009 for property evaluation in order to select the primary and secondary acquisitions. Exploration costs of $1,500,000 for Phase 2 exploration in 2010, $1,500,000 in 2011 for phase III and $2,500,000 in 2012 for Phase IV will be made by the Company.
Alto has agreed to pay for the expenses related to mineral licenses, permitting, legal fees and reporting required to maintain the projects in good standing with the Ghana ministry and mineral commission. The Company will be utilizing the existing infrastructure of Castle Peak through use of the Ghana offices, staff and geological team to conduct its exploration activities.
Following the completion of the Formal Definitive Joint Venture Agreement, the Company will file requisite details of the agreement as part of the Company’s continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) IDEA database (formerly EDGAR).