ALTO jumped 112.84% and closed the session at $0.0232 on a trading volume of over 54 million shares on Friday. The optimistic message board posts from Saturday afternoon continue today as well and another one says that the company is working on a NI43-101 for Q1 of 2011 on the acquired in March this year Los Tres Machos Gold and Silver Mines, giving also an estimate on the possible resource on this property.
Further on, the same post provides a link to the NI43-101 technical report for the newly announced Sid coal project in Kentucky. In the middle of last month, the company filed with the SEC to have entered into a non-binding Memorandum of Understanding to enter into a joint venture agreement with Royal Coal Corp. whereby according to the agreement ALTO had to do a $5 million equity investment in the Sid project in order to receive a 50% ownership. In the latest quarter report of Alto Group, the company reports cash position of about $32,700 and negative stockholders’ equity, but an update on the funding issue was also provided about two weeks ago.
The company said to have started aggressively the search for an institutional investor to provide the needed $5 million, and that it has even entered into negotiations with an undisclosed investment banking group. It looks only strange that there is still no press release about the above mentioned technical report for the Sid mine, and even stranger that the official announcements of the company could not even prevent a new 52-week low for ALTO share price in the past two weeks.
