Hugh Morgan backing Alta's Italian zinc play

HUGH Morgan is among the new backers of the Gorno zinc project in northern Italy after the former Western Mining supremo’s private equity group Arete Capital Partners introduced a consortium of investors putting A$3 million cash into Gorno’s owner Alta Zinc.

Hugh Morgan backing Alta's Italian zinc play Hugh Morgan backing Alta's Italian zinc play Hugh Morgan backing Alta's Italian zinc play Hugh Morgan backing Alta's Italian zinc play Hugh Morgan backing Alta's Italian zinc play

Alta Zinc's Gorno project in Italy

The consortium, which includes wealthy Melbourne industrial Victor Smorgon, will subscribe for shares in ASX-listed Alta priced at 1.1c.

Alta is led by Alexander Burns who made fortune last decade selling an iron ore project in Mauritania to Xstrata for A$514 million.

Burns invested in Alta back in 2014 and has been the biggest shareholder in the company with a 23% stake.

The new investors will hold 19.9% of Alta, with Burns being diluted down to around 18%.

The company's cash position at the start of 2018 was down to $1.4 million.

Euroz-backed Alta has been a poor market performer for years.

The Gorno project is an historical zinc operation that is currently seen as  a potential development featuring a processing plant located und...